Reply To: 45p per mile from 6 April 2011

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Meanwhile, down at the less glamourous end of the Business Travel scale….

It has been a considerable number of years since HMRC has changed the amount of allowable expenses per miles.

The rate for the first 10,000 miles has been stuck at 40p per mile since April 2002, when petrol cost just 70p/litre.

With the cost of petrol now almost doubling to £1.3X it does seem reasonable that the allowance should also increase, so it should be encouraging that George has raised the allowance to 45p per mile from 6 April 2011.

Of course petrol is just one component of the costs which the allowance is supposed to offset, and for much of that time cars, servicing and insurance actually became less expensive. It would have been good to see a higher allowance, but at least it is moving in the right direction.

Existing rates here:

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