Tax-free mileage rate has increased for this tax year

It may have escaped the notice of UK tax payers, and especially those who run their own businesses.

The rate of tax-free mileage allowances for using your own vehicle for business purposes have changed for tax year 2011-2012.

For example, for cars and vans, for the first 10,000 miles in a year, the rate has increased from 40p to 45p a mile.

This is an important changes and long overude, given the huge increases in petrol and diesel prices in recent years.

If you run your own business and do any miles on its behalf in your own vehicle, then claim the miles back from your business into your own pocket at this rate. The change applied from 6 April 2012.

For more detail see http://www.cmbpartners.co.uk/budget2011/tax_free_mileage.html.