Review of Approved Mileage Rates Promised
The government has confirmed that it will review its approved mileage rates before a future Budget.
Many businesses use HMRC’s approved mileage rates to reimburse directors and employees for the cost of using their own vehicle when travelling for business. The current rates have not changed since 2011, although motoring costs have increased significantly in that time.
There is no indication when a review will take effect, with the government’s statement simply specifying ‘a future Budget’.
In the meantime, to inform its work it appears that the government will meet with people struggling with increased costs.
As a reminder, the current mileage rates, which remain unchanged for now, are:
Type of vehicle
| First 10,000 business miles in the tax year | Each business mile over 10,000 in the tax year |
Cars and vans
| 45p | 25p |
Motor cycles
| 24p | 24p |
Bicycles
| 20p | 20p |
See: https://www.gov.uk/government/news/mileage-rates-review-to-support-working-people
