If you drive for work, you could be leaving hundreds of pounds on the table every year. Whether you’re self-employed, a company employee, or a contractor, the UK tax system allows you to claim back money for every business mile you drive, but only if you keep the right records.
Here’s everything you need to know.
What Counts as a Business Mile?
A business mile is any journey you make for work purposes. This includes travelling to a client’s site, visiting a supplier, driving between two workplaces, or making deliveries.
It does not include your ordinary commute from home to your regular place of work. HMRC is clear on this, your daily commute is a private journey, not a business one.
How Much Can You Claim?
HMRC sets what are called Approved Mileage Allowance Payments (AMAPs). These are the rates at which you can claim tax relief, or at which your employer can reimburse you tax-free.
For cars and vans, the current rates are:
- 45p per mile for the first 10,000 miles in a tax year
- 25p per mile for every mile after that
For motorcycles the rate is 24p per mile, and for bicycles it’s 20p per mile.
These rates are designed to cover fuel, wear and tear, insurance, and other running costs, so you don’t need to claim those separately.
Two Ways to Claim
If you’re employed, your employer may reimburse your mileage directly. If they pay you less than the HMRC approved rate, or nothing at all, you can claim the difference back through your Self Assessment tax return or by contacting HMRC directly.
If you’re self-employed, you claim mileage as a business expense through your Self Assessment tax return. You simply multiply your business miles by the approved rate and deduct that figure from your taxable income.
What Records Do You Need to Keep?
This is where most people fall short. HMRC requires you to keep a mileage log that records, for each journey:
- The date of the trip
- Where you travelled from and to
- The purpose of the journey
- The number of miles driven
A rough mental estimate at the end of the year won’t hold up if HMRC ever queries your claim. You need a contemporaneous record – meaning you log it at the time, not retrospectively.
The Easiest Way to Keep a Mileage Log
The simplest approach is to use a dedicated mileage tracking app. Note your odometer reading at the start and end of each business journey, and the app does the rest, storing your trips, calculating totals, and producing a report you or your accountant can use at tax time.
Simple Mileage Tracker is built exactly for this. There’s no GPS running in the background draining your battery, no complicated setup, and no subscription required to get started. Just open the app, enter your readings, and your mileage is logged in seconds.
What Happens If You Don’t Keep Records?
If HMRC investigates and you can’t produce a mileage log, your claim can be rejected entirely – meaning you’d owe tax on income you’ve already spent. In serious cases, penalties can apply on top.
Keeping records properly protects your claim and gives you peace of mind.
A Quick Example
Sarah is a self-employed physiotherapist who visits patients at home. Over the tax year she drives 8,000 business miles.
At 45p per mile, she can deduct £3,600 from her taxable income. If she’s a basic rate taxpayer, that saves her £720 in tax. If she’d never logged her mileage, that money would simply be gone.
Summary
- Business miles qualify for tax relief at 45p per mile (first 10,000) and 25p thereafter
- Your daily commute doesn’t count
- You must keep a proper mileage log with dates, destinations, and journey purposes
- Claims go through Self Assessment for the self-employed, or via HMRC for employees whose employer under-reimburses them
- A mileage tracking app is the easiest way to stay compliant without the paperwork headache
The money is there to be claimed. You just need to track the miles.
Disclaimer: This article is for general information purposes. Tax rules can change and individual circumstances vary – speak to a qualified accountant or visit HMRC.gov.uk for advice specific to your situation.