Approved Mileage Allowance Scheme

10 Jun 2022 Eamonn McKee    Last updated: 24 Jun 2022

With the spiralling cost of fuel NICVA have been approached by several charities about the implications of increasing the mileage allowance paid to staff and volunteers. 

Many charities pay mileage using the HMRC Approved rates.

Type of Vehicle

10,000 miles

10,000 + miles

Cars and vans










Although HMRC has set the rate for mileage allowance, the rates can differ depending on each organisation and how much they choose to pay.  In the case an organisation pays back at a lower rate, the employee can apply for a mileage allowance relief from HMRC for the difference at the end of the tax year. For instance, if the employer pays 35p per mile, tax relief can be claimed on the 10p difference per mile.  Equally, if an organisation chooses to reimburse more than the HMRC allowance, the extra will be subject to taxation.  Expenses and benefits: business travel mileage for employees' own vehicles

There have been increasing  calls for HMRC to review the current thresholds, which do not accurately reflect current fuel prices. This issue was flagged at the recent HMRC Charity Tax Forum by The Charity Tax Group. The organisation has asked for any feedback and practical real-life examples of difficulties that are being faced to be sent to [email protected]'s picture

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