If you use your own vehicle for work, the UK tax system lets you claim back travel costs tax-free through HMRC’s approved mileage allowance. The rates have not changed since 2011, but the rules around who can claim, what qualifies as business travel, and how to keep compliant records are frequently misunderstood. Getting it wrong means either leaving money on the table or, worse, filing an inaccurate return.
This guide covers the current HMRC mileage rates for cars, vans, motorcycles, and bicycles, explains exactly what counts as business travel, walks through the calculation, and sets out the record-keeping requirements you need to satisfy.
For fleet managers handling multiple drivers, Pocket Box automates mileage tracking, removes manual log errors, and keeps records audit-ready. See how our fleet management software handles driver mileage compliance.
Table of Contents
What Are the Current UK Business Mileage Rates?
HMRC sets Approved Mileage Allowance Payments (AMAPs) as the tax-free rates businesses and self-employed individuals can use when claiming for business travel in a personally owned vehicle. The rates below apply for the current tax year.
Source: HMRC Approved Mileage Allowance Payments (GOV.UK).
Why the 10,000-mile threshold matters
The two-tier structure for cars and vans is the detail most drivers miss. Once you pass 10,000 business miles in a tax year, every mile above that threshold earns 25p, not 45p. If you drive 12,000 business miles, you do not claim 45p for all 12,000 miles. The calculation splits at 10,000. It is also worth tracking your cumulative total through the year: if you are approaching the threshold in January or February, you will need to apply the lower rate to any remaining business travel before the tax year ends on 5 April.
A note on unchanged rates
The AMAP rates for cars and vans have been frozen at 45p and 25p since 2011. The Advisory Fuel Rates that apply to company cars are reviewed quarterly by HMRC, so it is worth confirming which rate regime applies to your situation. For drivers who cover high annual mileage, the gap between the AMAP rate and actual running costs has widened considerably over that period, which is why some employers choose to pay above the approved rate, accepting that the excess becomes a taxable benefit.
Who Can Claim Business Mileage?
The AMAP system applies to anyone using their own vehicle for work. There are three distinct groups.
Employees
If your employer reimburses you at the full AMAP rate, you have no further claim to make. If they pay less than the approved rate (for example, 30p per mile), you can claim tax relief on the shortfall directly from HMRC using a P87 form, or through Self Assessment if you complete a return. Your employer is not obliged to increase their rate; HMRC adjusts your tax code to account for the difference.
If your employer pays above the approved rate, the excess is treated as taxable income and recorded on your P11D.
Self-employed individuals
Sole traders and partners can deduct mileage allowance as a business expense on their Self Assessment tax return. The allowance reduces taxable profit, which in turn reduces Income Tax and National Insurance liability. You must choose between the mileage rate method and claiming actual costs (fuel, insurance, servicing, depreciation). You cannot switch methods mid-ownership of the vehicle.
Company directors using personal vehicles
Directors who use their own car for company business can claim at AMAP rates through the company’s expense process. The company pays the mileage allowance, which is not subject to PAYE or National Insurance, provided it does not exceed the HMRC-approved amount.
Company car drivers
AMAP rates do not apply to company cars. If you drive a company car and personally pay for fuel used on business journeys, you can claim reimbursement at HMRC’s Advisory Fuel Rates, which are lower and reviewed quarterly. These are separate from the AMAP regime.
What Counts as Business Travel?
This is where a significant number of claims either get rejected or attract HMRC scrutiny. The dividing line between business travel and commuting is set out in HMRC’s Employment Income Manual (EIM32000 onwards) and is fairly strict.
Your ordinary commute is not claimable
Travel between your home and your permanent workplace is a private journey under HMRC rules. It cannot be claimed regardless of how far you travel or how often you work from home. This applies to employees and self-employed individuals alike.
Temporary workplaces qualify
A temporary workplace is one you attend for a limited purpose or for a period expected to last no more than 24 months. Travel from your home to a temporary workplace is claimable. If an assignment extends beyond 24 months, or if it was always expected to last longer, HMRC reclassifies the site as a permanent workplace, and the travel no longer qualifies.
Practical examples
| Collecting equipment from the office and then going to a client | Claimable? | Reason |
| Home to a client office for a one-off meeting | Yes | Client office is a temporary workplace |
| Home to your regular, permanent office | No | Ordinary commute |
| Permanent office to a client site | Yes | Travel between workplaces during the working day |
| Home to a temporary project site (under 24 months) | Yes | Temporary workplace rule |
| Home to a supplier you visit weekly for two years | Check | May be reclassified as permanent after 24 months |
| Collecting equipment from the office then to a client | No (office leg) | The office leg is still commuting |
How to Calculate Your Business Mileage Claim
The calculation is straightforward once you know your total business miles for the tax year. Work through the steps below.
Worked example: under 10,000 miles
A delivery manager drives 7,400 business miles in the tax year in her own car. Her employer does not reimburse mileage.
- 7,400 miles x 45p = £3,330 total allowable claim
She reports this as a deductible business expense on her Self Assessment return, reducing her taxable profit by £3,330.
Worked example: over 10,000 miles
A field sales representative drives 14,200 business miles in the tax year. His employer pays him 20p per mile, below the AMAP rate.
Total AMAP allowance:
- First 10,000 miles: 10,000 x 45p = £4,500
- Remaining 4,200 miles: 4,200 x 25p = £1,050
- Total AMAP: £4,500 + £1,050 = £5,550
Employer payment:
- 14,200 miles x 20p = £2,840
Claimable shortfall:
- £5,550 – £2,840 = £2,710 — he can claim tax relief on this amount via a P87 form or Self Assessment
Passenger payments
If you carry a fellow employee as a passenger on a business journey, you can claim an additional 5p per mile per passenger. This is paid on top of the standard AMAP rate and is also tax-free up to the HMRC-approved amount. It is an underused allowance that many drivers do not claim.
Mileage Record-Keeping Requirements
HMRC does not mandate a specific format for mileage records, but it is explicit about the information each entry must contain. A log that cannot demonstrate the business purpose of every journey is not fit for purpose.
What your log must include
- Date of travel
- Start location and destination (include postcodes for clarity)
- Specific purpose of the journey (for example, “Client site visit, ABC Logistics Ltd, Birmingham”)
- Total miles for the journey
An entry that reads “Trip to Birmingham” does not meet HMRC’s standard. The journey’s purpose must be specific enough that an inspector can confirm its business nature.
How long to keep records
Sole traders must retain mileage records for five years after the 31 January Self Assessment submission deadline for the relevant tax year. Limited companies must keep records for six years from the end of the accounting period. For employees claiming via P87, HMRC recommends retaining records for at least 22 months after the end of the tax year in which the claim relates.
Paper, spreadsheet, or app?
Paper logbooks and spreadsheets are legally acceptable, but they rely entirely on the driver recording every journey without error or omission. A missed journey means a missed claim, and retrospectively reconstructing mileage is a red flag in an HMRC audit.
GPS-based mileage tracking apps record every journey automatically. They produce exportable logs that meet HMRC’s requirements and reduce the admin burden significantly. For fleet operations with multiple drivers, automated tracking is standard practice precisely because manual logs at scale are unreliable.
Pocket Box includes mileage and fuel tracking as part of its fleet management platform, giving transport managers a single, auditable record for every vehicle. Download our free mileage log template to get started if you are not yet using automated tracking.
Common Mistakes that Trigger HMRC Scrutiny
Most mileage claim problems fall into a small number of categories. Each one is avoidable with the right process.
Claiming for commuting
This is the most frequent error. If you work from home occasionally but travel to a fixed office most days, that office is your permanent workplace. Journeys to it are commuting, not business travel. It does not matter how far you travel.
Rounding up mileage
Estimating mileage rather than recording it precisely is a clear signal of poor record-keeping. HMRC can and does cross-reference claimed distances against route mapping tools. If the numbers do not add up, the entire log becomes suspect.
Double-claiming vehicle costs
The AMAP rate is all-inclusive. It covers fuel, oil, servicing, repairs, MOTs, insurance, road tax, and depreciation. You cannot claim the mileage rate and separately claim fuel receipts or repair bills. Choose the mileage rate method or the actual cost method, and apply it consistently.
Forgetting the passenger allowance
The additional 5p per mile per passenger carried on business journeys is separate from the main AMAP rate and does not reduce when you exceed 10,000 miles. It is often simply forgotten.
How to Submit Your Business Mileage Claim
The process depends on your employment status and your employer’s reimbursement policy.
Claiming via P87
Employees who are not required to complete a Self Assessment tax return claim mileage shortfalls using a P87 form, available on GOV.UK. You can submit up to four years of backdated claims. The claim adjusts your tax code so that HMRC collects less tax rather than issuing a cash refund, though refunds can apply in some circumstances.
Mileage Compliance for Fleet Managers
If you manage a fleet, the mileage compliance burden sits with you. Drivers have legal obligations around record-keeping, but transport managers are responsible for ensuring the systems exist to meet those obligations at scale.
Common failure points in fleet mileage compliance include drivers submitting incomplete logs at month-end from memory, no reconciliation process between claimed distances and actual routes, and paper logs that are lost or illegible. Each of these carries audit risk.
There is also a grey area problem specific to mixed-use fleets: drivers who sometimes use personal vehicles for work journeys alongside company vehicles. Without a consistent tracking process covering both, mileage records become fragmented and difficult to reconcile at year’s end. HMRC expects the same standard of record-keeping regardless of which vehicle was used.
Automated telematics removes most of these problems. Trip data is captured at source, journey purposes can be confirmed in the driver app, and records are stored centrally in a format ready for export. For fleets operating under operator licence conditions, accurate mileage records also support tachograph analysis and working time compliance.
Download our free vehicle daily inspection checklist and driver log templates to give your drivers a structured starting point.
Conclusion
The AMAP system is one of the more straightforward parts of UK business tax, but it catches out a significant number of people who either claim too little (by not knowing all the allowances) or claim incorrectly (by including commuting or keeping poor records).
The non-negotiables are: know your threshold, separate business journeys from commuting, log every trip at the time rather than reconstructing later, and choose one method (AMAP or actual costs) and stick to it.
For fleet managers, the scale of the problem is what makes automated tracking worth the investment. Mileage records that are captured automatically, stored centrally, and exportable on demand remove the audit risk that manual logs carry at volume.
Free Resources for Fleet Managers and Drivers
Download and use these templates to support day-to-day compliance:
- Vehicle daily inspection checklist — pre-trip walkaround template covering all DVSA check points
- Breakdown procedure template — step-by-step guide for drivers to follow when a vehicle breaks down
- Vehicle accident report form — standard form for recording incident details at the scene
FAQs
Do I need to keep fuel receipts when claiming the mileage allowance?
No. One of the practical advantages of using AMAP rates is that you do not need to retain fuel receipts. The pence-per-mile rate is designed to cover all motoring costs, including fuel, insurance, servicing, and depreciation. You do need to keep your mileage log, but not individual cost receipts. If you claim actual costs instead of AMAP rates, fuel receipts and other expense records become mandatory.
Can I claim mileage if I use a company car?
Not under the AMAP scheme. The AMAP system applies to personal vehicles only. If you have a company car, your employer covers the vehicle’s running costs. You can, however, claim for fuel you personally pay for on business journeys, at HMRC’s Advisory Fuel Rates. These are lower than AMAP rates and are reviewed quarterly.
What happens if I do not have a mileage log?
Without a contemporaneous mileage log, your claim is very difficult to defend under HMRC scrutiny. HMRC’s guidance is clear that records should be kept at the time of each journey, not reconstructed afterwards. If you are subject to a compliance check and cannot produce adequate records, HMRC can disallow all or part of the claim and may charge interest and penalties on any underpaid tax.
Can I backdate a mileage claim?
Yes, within limits. Employees claiming via P87 can backdate up to four tax years. Self-employed individuals must submit their Self Assessment return within the statutory deadline, but can amend a return within 12 months of the original filing deadline. Claims older than four years are generally outside the window for recovery. If you have missed claims in previous years, it is worth reviewing your records and submitting what you can.
Has the mileage rate changed recently?
The AMAP rate for cars and vans (45p for the first 10,000 miles, 25p thereafter) has not changed since 2011. Advisory Fuel Rates for company cars are different and are updated quarterly by HMRC. Always check the GOV.UK Advisory Fuel Rates page for the current figures if you are claiming for a company car.
Do I need business insurance to claim mileage?
HMRC does not require you to hold business use insurance as a condition of making a mileage claim. That said, if you use your personal vehicle for work journeys and only hold social, domestic, and pleasure cover, you may be uninsured for those trips under your policy terms. This is a separate matter from the tax position, but one worth checking with your insurer before making regular business journeys.
What is the mileage rate for electric vehicles?
If you drive an electric vehicle (EV) and use it for business in a personal capacity, the standard AMAP rate of 45p per mile (first 10,000 miles) applies. However, HMRC also introduced an Advisory Electric Rate (AER) for company-owned electric cars. For the current AER, check the GOV.UK Advisory Fuel Rates page, as this figure is updated quarterly alongside the other advisory rates.
