Aa Approved Mileage Rates !!top!!

Why does the rate drop to 25p after 10,000 miles? Think of vehicle ownership as having a high fixed entry cost but a lower ongoing running cost. Within the first 10,000 miles, the higher 45p rate helps absorb heavy fixed overheads like insurance, road tax, and annualized depreciation. Once those fixed annual baseline expenses are "paid off" by your initial mileage claims, the remaining costs are predominantly variable (just fuel and incremental tire or engine wear), which is why the statutory rate drops to 25p. 📈 Visualizing a Standard Mileage Claim

For the 2022-2023 tax year, the AA approved mileage rates are: aa approved mileage rates

A proportional slice of your annual vehicle insurance, MOT testing, and Vehicle Excise Duty (road tax). The 10,000-Mile Tier Analogy Why does the rate drop to 25p after 10,000 miles