Hmrc Mileage Allowance 2024/24. Mileage allowance payments are what you pay your employees for using their own vehicle for business. In the 2024/24 tax year, mileage rates are currently set at 45p per mile for the first 10,000 miles for cars and vans.

Amounts paid in excess of amap rates are taxable. Hmrc views company cars as a taxable benefit and the amount of tax you pay depends on several factors, including the purchase price of the car, how much co2.