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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 rates represent the maximum tax-free mileage allowances for employees using their own vehicles for business. Any excess is taxable. If the employee receives less than the statutory rate, tax relief can be claimed on the difference.

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