If you use your personal vehicle for work, you may be eligible to claim mileage allowance relief (MAR) to reduce your tax bill. HMRC allows you to claim tax-free mileage at approved rates, but certain costs cannot be claimed separately if you use this method.
This guide explains who can claim, how to calculate mileage relief, and what expenses are excluded when opting for mileage allowance.
Who Can Claim Business Mileage in the UK?
You can claim mileage relief if you use your own vehicle (car, van, motorcycle, or bicycle) for work-related travel. However, only specific types of journeys qualify:
✅ Eligible Business Mileage:
- Traveling between different work locations
- Visiting clients or customers
- Attending offsite meetings, conferences, or training
❌ Non-Eligible Mileage (Cannot Be Claimed):
- Commuting between home and your regular workplace
- Personal trips or errands
If your employer reimburses mileage at a lower rate than HMRC’s approved rates, you can claim the difference as tax relief.
HMRC Approved Mileage Rates for 2024/25
HMRC has set fixed mileage rates that apply when claiming business travel costs:
Vehicle Type | Up to 10,000 miles | Over 10,000 miles |
Car/Van | 45p per mile | 25p per mile |
Motorcycle | 24p per mile | 24p per mile |
Bicycle | 20p per mile | 20p per mile |
💡 Example Calculation:
If you drive 12,000 miles for business in a year:
First 10,000 miles × 45p = £4,500
Next 2,000 miles × 25p =
£500Total tax-free claim = £5,000
🚨 Important: These rates cover fuel, insurance, road tax, servicing, and depreciation. You cannot claim these expenses separately if you opt for mileage allowance.
What Expenses Cannot Be Claimed with Mileage Allowance?
When using HMRC’s mileage rates, the following costs are already covered and cannot be claimed separately:
❌ Fuel (petrol, diesel, electricity, LPG)
❌ Insurance costs
❌ Road tax
❌ Vehicle servicing and repairs
❌ MOT tests
❌ Depreciation or vehicle financing costs
❌ Breakdown cover
If you prefer to claim actual vehicle expenses, you must use the actual cost method, which requires keeping receipts and calculating the business-use percentage of total expenses. However, once you choose mileage allowance, you cannot switch to the actual cost method for that vehicle in future years.
When Can You Use Mileage Allowance?
You can claim mileage allowance relief if:
✔️ You use your personal vehicle for work-related journeys
✔️ Your employer does not reimburse you at HMRC’s full approved rates
✔️ You do not claim vehicle running costs separately
🚨 Who Cannot Use Mileage Allowance?
❌ Employees who drive a company car (different rules apply)
❌ Self-employed individuals who choose to claim actual vehicle expenses instead
How to Claim Business Mileage Tax Relief
1. Claiming Mileage Through Your Employer
- If your employer reimburses mileage at HMRC-approved rates, you do not need to claim anything extra.
- If they pay below HMRC’s rates, you can claim Mileage Allowance Relief (MAR) for the difference.
2. Claiming Mileage from HMRC
If your employer does not cover mileage or pays a lower rate, you can claim tax relief through:
📝 For employees:
- Online via your HMRC personal tax account
- P87 form (for past claims up to 4 years)
- Self Assessment tax return (if you already file one)
💼 For self-employed individuals:
- Claim mileage as a business expense in your Self Assessment tax return
Record-Keeping – What Proof Do You Need?
To support your claim, keep accurate mileage records including:
✅ Date of each journey
✅ Start and end locations
✅ Purpose of the trip
✅ Number of miles traveled
🚗 Tip: Use a mileage tracking app or spreadsheet to ensure your records are HMRC-compliant.
Frequently Asked Questions (FAQs)
1. Can I claim mileage for traveling to work?
No, regular commuting between home and your workplace is not eligible for mileage relief. However, travel to a temporary workplace is claimable.
2. Can I switch from mileage allowance to actual expenses later?
No, once you choose to use mileage allowance for a vehicle, you must continue using it for as long as you use that vehicle for business.
3. Can I claim VAT on business mileage if I’m VAT-registered?
Yes, if you are VAT-registered and use the flat rate scheme, you can reclaim VAT on the fuel portion of mileage expenses using HMRC’s advisory fuel rates.
4. Can I claim business mileage for past years?
Yes, you can claim for up to 4 previous tax years using HMRC’s P87 form or your Self Assessment return.
Key Takeaways
✅ You can claim business mileage relief for work-related travel but not for commuting
✅ HMRC’s approved rates cover all running costs, so separate expenses cannot be claimed
✅ Employees and self-employed individuals can claim tax relief on mileage allowance
✅ Keep detailed mileage logs to ensure compliance with HMRC rules
By understanding these rules, you can maximize tax relief while staying compliant with HMRC regulations for 2024/25.
Need More Help?
If you’re unsure about your mileage claims, consult a tax professional or visit HMRC’s website for the latest guidance.