BIM47702 - Specific deductions: travel & subsistence: use of vehicle: mileage rates from 6 April 2002

This page sets out details of the scheme that apply only in relation to journeys from 6 April 2002 onwards.

The taxpayer may only use a mileage rate if it does not exceed the appropriate rate for that type of vehicle in the following table:

Per business mile
Motor cars or vansEach mile up to 10,000 business miles40p
Each mile over 10,000 business miles25p
Motor cycleAll business mileage24p
Pedal cycleAll business mileage20p

The rates are based on the statutory rates under the Approved Mileage Allowance Payments scheme (ITEPA03/S230 (1)). They will be reviewed if there is a change in the statutory rates.

These rates are the maximum that a taxpayer may use if they wish to use a mileage rate basis. The number of people in the vehicle does not affect the rates.

Vehicles covered by the scheme

The taxpayer may use a mileage rate if they use a car, van, pick up, pedal cycle or a motor cycle for business purposes.

The taxpayer may also use a mileage rate if they use one of these vehicles as a taxi or for private hire.