Tax Rates & Allowances
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Tax Free Mileage Allowances
| First 10,000 business miles in the tax year | Each mile over 10,000 miles in the tax year | Extra passenger making same trip | |
|---|---|---|---|
| Cars and vans | 45p | 25p | 5p |
| Motorcycles | 24p | 24p | - |
| Bicycles | 20p | 20p | - |
These are the maximum tax-free mileage allowances for employees who drive their own cars to work. Any surplus is subject to taxation. If the employee's pay is less than the statutory rate, the difference can be claimed as tax relief.
