Mileage Rates

ADVISORY FUEL RATES (for Authorised Rates for use of own car scroll down the page)

Where an employee receives a company car, HM Revenue & Customs have published Advisory Fuel Rates (AFR) which can be paid to employees for business mileage without tax implications. The current pence per mile rates (to apply from 1 July 2008 but can be used from 1 June 2008) are shown below:

Deviating from the above rates

HM Revenue & Customs will only accept higher mileage rates to be paid where it can be clearly demonstrated that the actual cost is higher. for example where 4x4 cars need to be used for rough terrain. HM Revenue & Customs have stated that they will change the rates on 1 January and 1 July each year or where fuel prices change significantly.

AUTHORISED MILEAGE RATES

Where an employee uses their own car for business, HM Revenue & Customs state that the following amounts can be paid to employees without tax or National Insurance implications.

Budget 2008 confirmed that the above rates would continue for the foreseeable future.

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