Employee Travel Expenses

Employers should reimburse business mileage at the following ‘Advisory Fuel Rates’ when employees use a company car:

These rates apply from 1 December 2019. You can use the previous rates for up to 1 month from the date the new rates apply.

Hybrid cars are treated as either petrol or diesel cars for this purpose.

Advisory Electricity Rate
The Advisory Electricity Rate for fully electric cars is 4 pence per mile. Electricity is not a fuel for car fuel benefit purposes.

Business mileage for employee using their own car

VAT can be claimed on the ‘advisory fuel rate’ element of these amounts. The above amounts are inclusive of VAT. You will need to check the current advisory fuel rates as they can change on a regular basis. View these here.

Passenger Payments

If your employee carries another employee in their own car or van on a business journey, you can pay them passenger payments of up to 5p per mile tax-free.

Paying for meals when the employee is away from the officeHMRC have set ‘Benchmark Rates’ for reimbursing employees for meals incurred when an employee travels away from the office for a minimum amount of time. 

HMRC Benchmark rates for subsistence expenses:

Please click here for more detailed guidance: 

The above rates are HMRC’s benchmark rates and can be paid to the employee without the requirement for receipts. However, if you pay more than the benchmark scale rates then you need to report this amount as a benefit in kind, unless you are reimbursing actual costs which receipts have been provided for.