Mileage Allowance Payments (MAPs) are what you pay your employees (including directors) for using their own vehicle for business journeys. The rates are:

Cars and Vans

  • 45p per mile on the first 10,000 miles in the tax year.
  • 25p per mile on each additional mile above this.

Motorcycles

  • 24p per mile for any number of miles.

Bicycles

  • 20p per mile for any number of miles.

As long payments do not exceed the above rates they do not have to be reported on a P11D. If an employer pays less than these rates it is possible to claim tax relief on the difference (its called Mileage Allowance Relief).

Passenger Payments

On top of the above rates, for Cars and Vans only, you can pay 5p per mile for each passenger without having to report to HMRC. The passenger must be an employee and must also be traveling on a business journey.

Note - Mileage Allowance Relief is not available on Passenger Payments. If you make no passenger payments or if you don't pay the full amount allowable, employees are not entitled to any tax relief.

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