Can I claim mileage allowance relief for using my own car?
If you use your own car or van for business journeys and your employer pays you less than HMRC’s approved mileage rates — or nothing at all — you can claim tax relief on the shortfall. This is called Mileage Allowance Relief. You claim it directly from HMRC.
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Check what you're owed →Mileage Allowance Relief exists because employees who drive their own vehicles for work face real costs in fuel, wear and tear and running expenses. HMRC publishes approved mileage rates that are meant to cover these costs, and if your employer pays you below those rates, the gap is treated as an expense you can get tax relief on.
The approved rate is higher for the first part of your annual business mileage and lower beyond a set threshold, reflecting that fixed costs are spread over more miles as you drive further. You will need an accurate record of your business journeys — dates, destinations and miles — because the claim is based on the total business miles you have driven in the year.
It is important to count only genuine business travel, not your ordinary commute, which does not qualify. Because the relief depends on the difference between the approved rate and what your employer actually paid, keeping clear mileage logs and noting any payments you received makes the claim straightforward and is well worth doing if you drive a lot for work.
How to claim Mileage Allowance Relief
- Log your business miles. Record every qualifying business journey with the date, destination and number of miles driven during the tax year.
- Note employer payments. Add up any mileage payments your employer made, as relief is based on the shortfall below the approved rate.
- Work out the difference. Compare what you received with HMRC’s approved mileage amounts for your total business miles to find the relief due.
- Claim from HMRC. Submit your claim through HMRC or your Self Assessment return, keeping your mileage records in case they are requested.
Key figures (official sources)
- 55p per mileApproved mileage rate — cars & vans, first 10,000 business milesRate rose to 55p from 6 April 2026 (was 45p before).Source: GOV.UK — Business travel mileage: rules for tax (checked 2026-06-28)
- 25p per mileApproved mileage rate — cars & vans, over 10,000 business milesSource: GOV.UK — Business travel mileage: rules for tax (checked 2026-06-28)
Frequently asked questions
- What counts as a business journey?
- Travel you make for work, such as visiting clients or other sites. Your normal commute between home and your permanent workplace does not count.
- What if my employer pays nothing for mileage?
- You can claim relief based on the full approved mileage rate for your business miles, since there is no employer payment to offset against it.
- Why is the rate lower after a certain mileage?
- The approved rate drops once your annual business mileage passes a set threshold, because fixed running costs are spread across more miles.
- What records do I need?
- Keep a log of business journeys with dates, destinations and miles, plus details of any mileage payments your employer made to you.
MoneyFinder is an independent sign-posting service that helps you find financial support you may be entitled to. We are not a government body and do not provide financial advice. Figures are taken from the official sources cited above and were correct when last checked — always confirm current details on the linked GOV.UK pages.