How to Make HMRC Mileage Claim on Your Business Travelling
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People do many works; they travel, drive, and in doing all this they spend money on fuel. And somewhere in the background, HM Revenue and Customs quietly keeps a record of what you could claim back. That’s where the HMRC mileage claim steps in. In short, it is a simple way to get money back for business mileage you’ve already covered.
In current times, it is not a strange thing. Most people either forget to claim tax relief or don’t even know they’re eligible. However, having an expert, such as MMBA Accountants, by your side greatly reduces the burden. So let’s untangle this.
Table of Content:
What Is an HMRC Mileage Claim?
If you use your own car, company car, or company vehicle for business purposes, then you can claim back a portion of the costs. It includes fuel, wear and tear, and the general feeling of “I’ve spent too much driving”.
The system is built around HMRC’s approved mileage rates. It is also known simply as approved mileage rates or standard rates.
These rates are fixed per mile, and they cover things like fuel, insurance. It also covers maintaining your vehicle, and other travel-related expenses.
You just need accurate records, a mileage log, and proof your business trips actually happened.
The Approved Mileage Rates
HMRC keeps it simple. For instance, for cars and vans:
- 45p per mile for the first 10,000 miles
- 25p per mile after 10,000 miles
These are the famous first 10,000 miles rates that most employees and self employed people rely on. The HMRC mileage rates stay the same rate no matter if the employer reimburses you or not.
If your employer pays you less than the mileage allowance payments approved by HMRC, then you can claim the difference on your tax return.
However, in case your employer reimburses you more than the approved amount then you might have to pay tax on the extra.
Mileage Allowance Payments (MAPs)
These are the payments you receive from your employer for using your personal vehicle for work purposes.
If the employer reimburses you at a lower rate than HMRC’s approved amount, you can use an assessment tax return or self assessment tax return to claim the remaining tax relief.
For example: HMRC allows 45p per mile. But your employer pays you 20p; in this case, you can claim 25p per mile as tax relief for those business miles.
What Counts as Business Travel?
One must keep in mind that not every trip qualifies. Some people get excited and start adding supermarket runs. HMRC doesn’t approve that.
Eligible business trips
Eligible business travel expenses include:
- Visiting clients
- Travelling to temporary workplaces
- Driving for meetings
- Work-related site visits
- Anything that is strictly for business purposes
Also, one can also make a claim if one owns a motorcycle and make daily business travelling on it.
Non-eligible trips:
Below are non eligible trips list:
- Commuting
- School runs
- Late-night takeout missions
- Anything personal, even if you thought about work on the way
Your business journeys must have purpose. And HMRC expects evidence even a simple map screenshot or mileage log helps.
Company Cars and Advisory Rates
If you use a company car, the rules change. Then you can’t claim the standard 45p rate. Instead, HMRC gives something called an advisory rate based on engine size and fuel type (like diesel or petrol). This rate is used for reimbursing employees for fuel on business travel, especially when using a company-provided vehicle.
You can also claim separately if you’re covering fuel personally.
Self-Employed Mileage Claims
If you’re self employed, you can’t claim both fuel and mileage. It’s one or the other.
Most go with approved mileage because it’s easier to calculate, and it already covers things like insurance, repairs, fuel, and general running costs.
You just total your business mileage, apply the mileage rates, and include it as a business expense in your self assessment.
How to Calculate Your Mileage Claim
Let’s break it down with an example.
| Details | Cons |
| Business miles driven (tax year) | 8,000 miles |
| HMRC approved rate – For more information, see Understanding the Simple Assessment Tax Scheme Made Easy. | 45p per mile |
| Total mileage claim (8,000 × 0.45) | £3,600 |
| Mileage allowance payments received from employer | £2,000 |
| Remaining amount eligible for tax relief | £1,600 |
You add this to your tax return, and HMRC will adjust your money back as a reduction in tax owed or a small refund.
Keeping Records
To keep HMRC happy (and avoid being interrogated about your business travel), keep:
- A mileage log
- Dates of business trips
- Maps or routes
- Purpose of the trip
- How many miles you travelled
- If an employer pays or you paid for fuel yourself
You must show that your trips qualify as real work journeys.
Why One Should Consider Mileage Claims?
One needs to bother with mileage claims because one has spent money. And the system is literally there to reimburse you or reduce the tax you pay.
It’s one of the easiest benefits employees and businesses forget. A few lines on your assessment tax return, and you get real cash back.
And yes, it absolutely helps with rising fuel prices, increasing vehicle wear and tear, and growing travel costs.
Conclusion
The HMRC mileage claim isn’t complicated. A person drives, records and makes a claim.
If you’re an employee, an employer, or the classic self employed person, those business miles matter. So, you must track them and add them to your tax return. Also, claim what you’re owed because if you don’t, HMRC definitely won’t remind you.
Frequently Asked Questions
What counts as business mileage?
Business mileage includes business journeys that you complete for work. However, normal commuting doesn’t come under it.
How do I claim mileage on my assessment tax return?
You add your car mileage allowance details, reimbursements, and approved amount to the relevant section of your assessment tax return.
Can I claim mileage for cars and vans?
Yes, HMRC allows claims for cars and vans using the standard fuel rates and approved mileage rules.
What if I receive mileage allowance payments from my employer?
If you receive mileage allowance payments from my employer, you can still make a total expenses claim if the payments you receive are lower than the HMRC car mileage allowance.
Can I claim for taking a passenger on business journeys?
Yes, for eligible business journeys, you receive extra passenger-related reimbursements. But it depends on the business expense rules.
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