Updated Guidance: Approved Mileage Allowance Rates

HMRC has updated its guidance this week to clarify that their Approved Mileage Allowance rates apply equally to electric and hybrid cars and vans as they do for petrol and diesel vehicles.

Tax relief is available at 45p per mile for the first 10,000 business miles in a tax year and 25p thereafter.

As these rates are authorised, employers can pay up to this amount where employees use their own cars for business travel.  Where employees are paid less than the authorised rate, they will be able to claim tax relief on the difference.

If you need help with an expense claim, please do not hesitate to get in touch.

Further reading:  how-to-tax-mileage-payments-for-employees