How much can you claim for the costs of business travel? How much can be reimbused by an employer towards to costs of qualifying business travel?

These authorised mileage rates set the amounts that:

• An employer can reimburse an employee for their business travel, unless a different rate has been authorised by HMRC.
• An employee, who has not been reimbursed for their business travel may claim as a deduction against their employment income, unless they agree a different rate with HMRC.
• A self employed person or landlord can claim as a deduction in their business account in respect of self employed business travel, instead of making a claim for their actual expenses.

 Cars and vans

	Tax free (per mile)	NICs free (per mile)
First 10,000 miles	45p (from 6 April 2011) 40p (up to 6 April 2011)	45p (from 6 April 2011) 40p (up to 6 April 2011)
10,001 and over	25p	45p (from 6 April 2011) 40p (up to 6 April 2011)

 

• These rates can be used by both the self-employed and employees/directors.
• From 6 April 2018 on they are also available to unincorporated property businesses.
• These rates also apply to electric cars: they are not fuel specific.
• These rates remain unchanged since 2012.

Car mileage payments: a NICs oddity

Providing that the employer reimburses an employee at the AMAPs rates above there is no PAYE or NICs liability. 

Passengers, motorbikes and bicycles

The rates are the same whatever the business mileage.

Claimant	Rate per mile
Passenger	5p
Motorcycle	24p
Cyclist	20p

 

Home to work travel

Home to work travel is generally regarded as commuting and a mileage allowance may not be claimed. 

The Cycle to work scheme

Small print

Sections 229-230 ITEPA 2003: vehicles
Sections 233-234 ITEPA 2003: passenger payments 

What’s New

COVID-19 may have had the effect of making many employees home based on a temporary basis. The employee travel rules should be reviewed according to each case.

On 1 December 2017, the Government announced it had considered the position and would not be revising its approach to AMAP following HMRC's Taxation of employee expenses: response to the call for evidence.