Current mileage reimbursement trends

[DickP]

Hi,

I'm interested to know what the current general consensus is on mileage claim rates offered by employers.

No car allowance (it was, in effect, rolled into my annual salary on a recent salary adjustment). Due to grade within the business I can only claim the HMRC company car advisory rates, and then separately claim the tax difference.

Is this fairly widespread now?

Thanks,

[andrew-6xade]

I get an allowance and 45p (10k) and 25p (10k+)

Soon to move to 55p as HMRC have upped their rate.

[Countdown]

We pay 45ppm. Our union has asked us to up it to 55ppm.

Decision pending.

We abolished car allowances a few years ago.

[surveyor]

Car allowance here

Advisory company car fuel mileage rates paid.

I’ve switched to an ev as I got fed up with a shortfall on work mileage

[Dave Hedgehog]

surveyor said:

Car allowance here

Advisory company car fuel mileage rates paid.

I ve switched to an ev as I got fed up with a shortfall on work mileage

with depreciation most of my cars cost over £2 a mile, luckly i work at a single location

[Sheepshanks]

Not particularly current, but our, £600-750/mth depending on job, allowance was also rolled into our salaries, then mileage was paid at 15p/mile.

Most of the £600/mth people were doing 25K/yr, paying tax at 40% so the allowance worked out about even for the firm but was a couple of £K better for employees (than being paid the full 45p/25p).

Trouble was that it wasn't long before people forgot about the allowance and never took the tax rebate into account and felt all they were getting for using their car was 15p/mile.

[Terminator X]

I get 55p per mile. The boss changed it the day it was announced.

TX.

[Scrump]

My car allowance was rolled into basic salary a few years ago. Was getting 45p/mile (up to 10k miles) but employer has recently increased this to 55p.

[Box Fresh]

I get £875/mth plus 45p/25p a mile.

Currently running a 2016 bmw 335d owned outright.

[MustangGT]

Box Fresh said:

I get £875/mth plus 45p/25p a mile.

Currently running a 2016 bmw 335d owned outright.

That is very generous indeed.

[surveyor]

Worth noting the new company car fuel rates from 1st June

[smithyithy]

MustangGT said:

Box Fresh said:

I get £875/mth plus 45p/25p a mile.

Currently running a 2016 bmw 335d owned outright.

That is very generous indeed.

Very! Ours was half that (depending on band) and the car had to be <5 years old..

[PorkInsider]

smithyithy said:

MustangGT said:

Box Fresh said:

I get £875/mth plus 45p/25p a mile.

Currently running a 2016 bmw 335d owned outright.

That is very generous indeed.

Very! Ours was half that (depending on band) and the car had to be <5 years old..

I think I can beat Box Fresh's very generous policy with ours (or mine at least): not just car allowance AND full 45p/25p per mile, but the allowance is included as part of salary, so I get: pension contributions, % based bonuses, % based salary increases all based on a figure which includes car allowance.

[Blown2CV]

andrew-6xade said:

I get an allowance and 45p (10k) and 25p (10k+)

Soon to move to 55p as HMRC have upped their rate.

it increased to 55ppm with the start of this tax year.

[jonwm]

I've spent the last 25 years in corporate, it has varied from company car with fuel card t ocar allowance, until i moved to my current non corporate role i have always used and only been given the HMRC advised rate £0.15p etc then claimed the remainder as tax allowance on SA.

This role give me car allowance £6500 and the 55p a mile which I found strange but I'll take it.

I run a Tesla model Y that I charge at 3p per KWH and this month have done circa 1500 miles of which only 51 have been business miles.

My claim is £28.05 and the cost to "fuel" the other 1450 odd miles is circa £17 which is crazy, so I'm a tenner up.

I go to Glasgow next month, I have 1300 free supercharger miles to use so will cost me the full charge at home first and refill when home so lets say £4 and I'll be claiming something like £350 back. I feel I need to tell them they should maybe pay the recommended amount. Also not sure on any tax implications of it.

[andrew-6xade]

I get the same as you.

I've claimed £4k since the start of 2026 and it's probably cost me £100