P11D – are you generous with mileage payments?

Navigating P11D and mileage payments can be complex. It’s not uncommon for employers to remunerate staff for business mileage. But, do such payments constitute a P11D benefit? Let’s delve in.
HMRC’s Approved Mileage Allowance Payments


HMRC allows employers to compensate £0.45 per mile for the first 10,000 miles and £0.25 thereafter for car usage. For motorbikes, the rate is a steady £0.24 per mile, without any reduction after 10,000 miles. Interestingly, the same rates apply to electric vehicles.

When Does It Become a P11D Benefit?


Should you choose to pay above these HMRC rates, that’s when you tip into P11D territory. Any amount paid over the approved rates becomes a taxable benefit. This must be reported on the P11D form.


Underpayment and Employees’ Claims


If you pay less than the approved amounts, there’s no P11D reporting needed. Instead, employees could claim the shortfall as a job-related expense deduction from their income.


Unsure About Reporting?


P11D forms and mileage payments can seem a maze of figures and regulations. It’s important to get it right to avoid unnecessary tax liabilities for your employees or your business.

Expert P11D Guidance


When it comes to ‘P11D and mileage payments’, accuracy is key. As specialists in P11Ds, we’re here to guide you through. Whether it’s determining reportable amounts or helping employees understand their claims, our expertise can make all the difference. If you’re grappling with the details, don’t hesitate to reach out. We’re equipped to streamline your P11D process, ensuring peace of mind and compliance.


If you’d like to speak to one of our experts about P11D’s, please call 01243 782 423, or email from our contact page and we will be in touch!

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