Sarah Bradford outlines the rules on mileage payments, highlighting the application of the new advisory rates for electric cars.
HMRC publishes two sets of mileage rates which can be used by employers to make tax-free mileage payments to employees who meet the cost of fuel for business travel.
The advisory fuel rates can be used for making mileage payments to company car drivers, while the higher approved mileage rates can be used to reimburse employees using their own vehicles for business travel.
The advisory fuel rates
The advisory fuel rates are fuel-only rates published by HMRC on a quarterly basis. They can be used to reimburse employees who meet the cost of fuel for business journeys without triggering a tax or National Insurance contributions (NICs) liability. They can also be used by employees to offset 
