Claiming business mileage on a private car

If you are an employee but have to use your own vehicle for business journeys then you can claim mileage. An employee cannot have tax relief for the cost of a journey which is ordinary commuting or private travel.

If the employer pays you for the business miles you do they can pay you up to the HMRC approved rates below – known as Approved Mileage Allowance Payment (AMAP) without incurring any tax and NIC.

If they reimburse you more than the approved rate the additional amount will be subject to tax and NI.

If they don’t reimburse you at the approved rates or not at all then you can claim tax relief on the difference.

On 21st May, in addition to the Government's 'Great British Summer Savings' scheme, the Chancellor Rachel Reeves announced that the approved mileage rate will rise by 10p per mile, backdated to April 2026, taking the rate for the first 10,000 business miles to 55p per mile.

	First 10,000 business miles in tax year	Each business mile over 10,000 in tax year
Cars and vans	55p	25p
Motorcycles	24p	24p
Bicycles	20p	20p

If you would like any further advice in this area please contact us on 01535 601199 or use our simple online contact form to arrange a free initial consultation.

Last updated 22 May 2026 | First published 21 Jul 2021

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This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.

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