From 6 April 2002, the Inland Revenue authorised mileage rates for business travel will be at the same rate regardless of the engine size of the car.

That rate will be 40p for the first 10,000 business miles in the tax year and 25p for each additional mile.

These rates have become law rather than a concession which removes the need to apply for dispensation to the Inland Revenue for not having to return these details on P11D forms. You will however still be required to keep records of business mileage re-imbursed. If you pay more than the above mentioned rates, you will need to return the excess paid on P11Ds.