Mileage allowance

You may have heard, or even worked for businesses that reimburse you for using your own vehicle to travel to and from business events, such as meetings, training sessions and industry events.

This is a way of reimbursing the employee or business owner for the fuel as well as the wear and tear of the vehicle.

Many businesses choose to use the Governments preapproved mileage rates, but they can set their own.

The reason businesses choose the Governments set rates is because it is the most you can provide your employee per mile without the employee paying any Income Tax or National Insurance on it, as well as the business not needing to pay any Employers National Insurance on it either.

If a business wanted to pay more that the approved Government rate, then the excess over the approved rate would be deemed to be taxable.

Further information can be found at gov.uk