Claiming business mileage using a private vehicle

HMRC mileage rates for 2026/27

The car and van rates also cover electric and hybrid vehicles. Changing cars does not restart the 10,000-mile allowance: mileage for vehicles in the same category is combined.

For 2023/24, 2024/25 and 2025/26, the car and van rates were 45p for the first 10,000 business miles and 25p thereafter. Motorcycle and bicycle rates were 24p and 20p respectively. Use the rate for the relevant tax year, rather than treating January to December as one mileage year.

An employer can also pay 5p per passenger per business mile when you carry a fellow employee in your car or van on a qualifying work journey. You cannot claim passenger tax relief simply because your employer does not pay this supplement.

Reimbursement and Mileage Allowance Relief

For 12,000 qualifying car miles in 2026/27, the approved amount is:

10,000 × £0.55 + 2,000 × £0.25 = £6,000.

If your employer pays less than the approved amount, you may claim Mileage Allowance Relief on the difference. This reduces your taxable income; HMRC does not reimburse the whole shortfall.

For example, 1,000 qualifying miles produce an approved amount of £550. If your employer pays £450, the difference is £100. At a 20% tax rate, that could mean £20 in tax relief, subject to your tax position. Amounts paid above the approved amount can create a taxable excess. National Insurance uses separate rules: the car mileage rate is 55p for all business miles in 2026/27.

Which journeys and costs count?

The employee rules cover a vehicle you own or lease personally and use for work. Travel between workplaces or to a qualifying temporary workplace may count. Normal travel between home and your permanent workplace does not.

Mileage rates cover vehicle running costs such as fuel or electricity, servicing and repairs. Do not claim these costs again on top of mileage. Qualifying business parking and tolls can be considered separately. Company cars use different fuel and electricity rules, rather than the full private-car mileage allowance.

Self-employed mileage claims

Eligible sole traders and partnerships without a company partner can choose simplified vehicle expenses instead of actual vehicle costs. For 2026/27, cars and goods vehicles use 55p for the first 10,000 business miles and 25p thereafter; motorcycles use 24p. This is a deduction from business profits, rather than an employer reimbursement.

You cannot use this method for a vehicle whose purchase has already been deducted or for which you have claimed capital allowances. Once chosen for a vehicle, continue using it while that vehicle remains in the business. Some vehicles, including specially designed commercial cars such as black cabs, are excluded. If your accounts do not follow the tax year, check HMRC's apportionment rules before calculating the deduction.

Keep a useful business mileage log

Record each journey's date, business purpose, start and end locations, miles travelled and vehicle, together with the rate and any employer payment. Keep business mileage separate from commuting and private travel.

HMRC's employee expense claim service asks for mileage-log copies showing the reason for each journey and its start and end postcodes. Keep a separate log for each employment. If you submit a Self Assessment return, claim the relief through that return.

Motolog helps you record trips, organise a mileage log and prepare reports. It offers automatic official rates where supported and custom rates for your own reimbursement arrangements. Check the selected rate, tax year and journey eligibility before submitting a claim.

See how Motolog helps you track business mileage. You can also compare plans and pricing.