Overview
- HMRC’s established guidance allows claims for business use of personal vehicles at 45p per mile for the first 10,000 miles each tax year and 25p per mile thereafter.
- Advisers highlight that 10,000 business miles can equate to a £4,500 expense that reduces taxable profit, with payments to yourself treated as tax-free under the approved rate.
- Ordinary commuting to a usual workplace does not qualify, while eligible business journeys require dated mileage records to support claims.
- Drivers may claim for the current tax year plus the previous four years, with online claiming available through Gov.uk.
- If an employer pays a mileage allowance, workers can only claim relief on any shortfall, and those using the approved rate cannot separately claim for fuel, electricity, vehicle tax, MOTs or repairs.