Authorised mileage allowance payment rates

Employers can reimburse employees for business miles travelled using their own cars up to the maximum rate per mile. Any payments over the rates will be taxable on the employee. If payments are made which are below the maximum rate per mile, the difference can be claimed by the employee, usually via the self assessment tax return form.

AMAP rates

The following rates apply:

A passenger allowance of 5p per passenger may be payable in some circumstances. The passenger must be a fellow employee and the employee must receive the allowance from the employer.

Advisory fuel rates for company cars

Non-statutory rates can be used by an employer to:

• reimburse employees for fuel used for business miles travelled in the company car, or
• charge employees for fuel used for private miles travelled in the company car where the employer has provided fuel and wishes to avoid the fuel scales.

The rates accepted by HM Revenue & Customs from 1 August 2007 for cars up to 3,000cc are: