It has been close to two decades since any changes in the reimbursement of civil service mileage rates were introduced. Owing to economic and environmental considerations, 1st April 2017 introduced the enforcement of significant changes to the dated system which will heavily impact the private sector.

All businesses that reimburse their employees for business motoring expenses will begin to see the implications of the recent changes as following:

  1. An increase in the number of distance bands that will focus on those employees who do significant work-related mileage;
  2. A reduction in the reimbursement rate for the first 1,500km;
  3. An increase in the rate for those doing between 1,501km to 5,500km per annum; and
  4. More beneficial rates for cars with lower engine sizes and emissions.

As a result, some employees will find themselves financially “better off” while others will see the opposite effect, depending on the distance travelled on a regular basis, the type of car and how efficient it is.

Clients are advised it may take some time for the full impact of these changes to be seen and we recommend that companies ensure their systems for reimbursing employees, and the rates they pay, are adapted. We also recommend communicating these changes to employees who may be unaware of this looming change and its impact on their finances.


Motor Travel rates 2017

Effective from 1st April 2017


Motor Travel Rates per kilometre

Distance BandsEngine Capacity up to 1200ccEngine Capacity 1201cc to 1500ccEngine Capacity 1501cc and over
Band 10 – 1,500 km37.95 cent39.86 cent44.79 cent
Band 21,501 – 5,500 km70.00 cent73.21 cent83.53 cent
Band 35,501 – 25,000 km27.55 cent29.03 cent32.21 cent
Band 425,001 and over21.36 cent22.23 cent25.85 cent


Reduced Motor Travel Rates per kilometre

Engine Capacity up to 1200ccEngine Capacity 1201cc to 150ccEngine Capacity 1501cc and over
16.59 cent17.63 cent18.97 cent



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