Claiming Mileage Allowance Relief on work based journeys

If you use your personal car for work journeys in the UK and your employer isn’t reimbursing you in full for the mileage, you could be entitled to tax relief from HMRC. Read on to discover if you’re eligible for Mileage Allowance Relief and how much you could claim. 

If during this tax year you’ve used a personal vehicle, including a bicycle, to complete a work-related journey that didn’t form part of your regular commute it’s highly possible that you’re entitled to claim Mileage Allowance Relief. 

To help you to decide if you’re due Mileage Allowance Relief for a journey you’ve made, we’ve outlined the main eligibility criteria on this page, including what is and isn’t covered. 

Who can claim Mileage Allowance Relief?

There are a few rules when it comes to who is eligible for Mileage Allowance Relief. 

1. You have to be a UK tax payer.

If your annual income falls below the threshold for paying tax in the UK you won’t be able to claim tax relief on any work-related journeys you make using your own vehicle. 

2. You must use your own vehicle.

Only privately owned vehicles qualify for MAR. This means that if you drive a company car for work purposes, you are exempt from claiming tax relief on the mileage - although you may be entitled to other benefits. 

In addition, you cannot claim MAR if:

3. You’re only commuting to and from your regular workplace. 

Journeys you make to your permanent place of work aren’t eligible for MAR so you can’t claim milage for your usual daily commute. 

Only journeys to a “temporary” work location, for example, driving to a client meeting or an off-site training facility, qualify for Mileage Allowance Relief from HMRC. 

4. Your employer has reimbursed all of your business mileage in full.

If your employer is already reimbursing your mileage in full to the rates outlined in HMRC’s Approved Mileage Allowance Payment scale (see table further down) you aren’t eligible for Mileage Tax Relief. 

The only exception is if you’re being reimbursed for your mileage at a lower rate, in which case you are permitted to claim for the shortfall. 

How much MAR are you entitled to claim?

The amount of Mileage Allowance Relief you can claim depends on a few different factors:

1. The rate of UK tax you pay

2. The type of vehicle you drive for business journeys

3. The amount of business miles you’ve accrued (in a single tax year)

4. The value of any AMAP paid to you by your employer

For 2022, the approved mileage rates, according to HMRC, are as follows:

You can work out how much MAR you may be entitled to with this calculation:

(Business miles driven x approved mileage rate) x rate of tax you pay = total tax relief due

If you’ve travelled in excess of 10,000 business miles in a single tax year by car or by van, you will need to separately calculate the mileage for journeys below and above 10,000 miles and multiply the total sum by the rate of tax you pay. 

This does not apply if you use a personal motorbike or bicycle to complete non-traditional work journeys as the flat rate per mile is the same irrespective of how many miles you accrue. 

The only exception comes if you have been partially compensated for your business mileage by your employer. In this case, you will need to deduct any mileage you’ve been paid from the flat rate for your vehicle type in order to accurately calculate the tax relief owed to you.

How do you claim for Mileage Allowance Relief?

Claiming MAR is incredibly straightforward. Simply visit https://www.gov.uk/tax-relief-for-employees/vehicles-you-use-for-work and you’ll be asked a series of questions to determine if you’re eligible. 

Claims of less than £2,500 can be made online. Those above £2,500 will require a self-assessment tax return. 

In both instances you will need a Government Gateway account. If not already registered, you will need your national insurance number and a recent payslip or P60 to set one up. 

Remember, you will need to evidence the business mileage you have made to HMRC in order to claim tax relief on business journeys. This means you will need to keep clear and accurate records of each eligible business journey you make throughout the current tax year, so you’re ready to claim all of your eligible business mileage at tax year end.