HMRC Business Mileage Claims — Complete FAQ

The HMRC Approved Mileage Allowance Payment (AMAP) rates for cars and vans increased from 6 April 2026. For 2026/27 (journeys from 06-04-2026): 55p per mile for the first 10,000 business miles each tax year, then 25p per mile above that — the first increase since 2011. For 2025/26 and earlier (journeys before 06-04-2026): 45p per mile for the first 10,000 miles, then 25p. Motorcycles — 24p per mile (no threshold, unchanged). Bicycles — 20p per mile (no threshold, unchanged). These rates apply when you use a vehicle you own personally for business travel, either as a self-employed sole trader or as an employee or director being reimbursed by your company. MileageClaim applies the correct rate automatically based on the date of each journey — 45p for journeys before 06-04-2026 and 55p from 06-04-2026.

The 10,000-mile threshold is the point at which the HMRC car mileage rate drops to 25p per mile. From 6 April 2026 (tax year 2026/27), the higher rate is 55p for the first 10,000 business miles. Before 6 April 2026 it was 45p. From mile 10,001 onwards, every business mile is 25p regardless of the period. Worked example for 2026/27: if you drive 13,000 business miles, your total HMRC claim is (10,000 × 55p) + (3,000 × 25p) = £5,500 + £750 = £6,250. The threshold resets to zero at the start of each new tax year (6 April). This threshold only applies to cars and vans — motorcycles (24p) and bicycles (20p) have a single flat rate with no threshold. MileageClaim tracks your running mileage total throughout the year and switches the rate automatically at the right point.

HMRC Approved Mileage Allowance Payment (AMAP) rates apply to four types of personally-owned vehicles. Cars and vans are reimbursed at 55p per mile for the first 10,000 business miles from 06-04-2026 (45p per mile before that date), then 25p per mile above 10,000. Motorcycles are reimbursed at a flat rate of 24p per mile with no threshold. Bicycles are reimbursed at a flat 20p per mile. The key requirement is that the vehicle must be personally owned by you — not provided or owned by your employer or company. If your company provides you with a company car or van, AMAP rates do not apply and you may be subject to a Benefit in Kind charge instead. Electric cars are classified as cars for AMAP purposes and follow the same 55p/25p rates from 06-04-2026. Hybrid cars are also treated as cars. MileageClaim supports all four vehicle types.

Yes. For HMRC AMAP purposes, electric cars are treated exactly the same as petrol or diesel cars and follow the same rate — 55p per mile from 06-04-2026 (45p before) for the first 10,000 business miles, then 25p per mile thereafter. This applies to personally-owned electric cars used for business travel. There is a separate HMRC rate called the Advisory Electricity Rate (AER) — currently 7p per mile — but this specifically covers employees who use a company-owned electric car and charge it using their own electricity at home. Most sole traders and directors using their own electric car will use the standard AMAP rates, not the AER. Electric motorcycles are treated as motorcycles (24p per mile). There is no separate category for electric bicycles — they follow the standard bicycle rate (20p per mile). In MileageClaim, simply select 'car' as your vehicle type for any electric or hybrid car and the correct HMRC rates will be applied automatically.

HMRC gives self-employed people two methods to claim vehicle costs as business expenses. The first is the AMAP simplified mileage rate — a flat pence-per-mile amount that covers all running costs in one figure: fuel, insurance, servicing, MOT, tyres, and depreciation. The second method is to calculate a proportion of your actual vehicle costs: you work out what percentage of your total annual mileage was for business use, then claim that percentage of your real fuel bills, insurance premiums, servicing costs, and so on. The simplified flat rate is simpler, requires less record-keeping, and works out favourably for most sole traders — particularly those with fuel-efficient vehicles or moderate mileage. Claiming actual costs can work out higher for high-mileage drivers with expensive-to-run vehicles, but it requires detailed receipts and records throughout the year. Crucially, you must choose one method and stick with it for the life of the vehicle while you own it — you cannot switch between the two methods for the same vehicle. MileageClaim is designed around the AMAP flat rate.

Yes. As a limited company director, you can claim mileage reimbursement from your own company whenever you use your personal vehicle for business travel. Your company reimburses you at up to the HMRC AMAP rate — 55p per mile from 06-04-2026 (45p per mile before) for the first 10,000 business miles, then 25p per mile. This reimbursement is completely tax-free for you as the individual — you pay no income tax or National Insurance on it. Your company can also deduct the reimbursement as a legitimate business expense, which reduces its Corporation Tax bill. To make the claim correctly, you need a mileage log that records the date, business purpose, start and end locations, and distance of each qualifying journey. MileageClaim stores all of this automatically and generates a structured PDF report that your accountant can use when preparing your annual company accounts. If your company owns and provides you with a company car, different rules apply — speak to your accountant about Benefit in Kind implications in that case.

Yes. If you are self-employed as a sole trader or in a business partnership, you can use HMRC's simplified mileage rates to claim your business travel costs as a tax-deductible expense. You claim the HMRC flat rate — 55p per mile from 06-04-2026 (45p before) for your first 10,000 business miles each tax year, then 25p per mile — on your Self Assessment tax return, in the self-employment section under vehicle expenses. One important rule: once you choose the flat mileage rate for a vehicle, you cannot also claim your actual fuel, insurance, MOT, or servicing costs for that same vehicle. You must stick to one method or the other for the entire time you use that vehicle in your business. In practice, the flat rate is simpler and works out favourably for the majority of sole traders. MileageClaim tracks your journeys and running mileage total throughout the year, and generates a structured PDF report you can hand directly to your accountant or use when completing your Self Assessment return.

If you are an employee (not self-employed) and your employer reimburses your business mileage at a rate lower than the HMRC AMAP rate, you can claim Mileage Allowance Relief (MAR) for the difference. For example, if your employer pays 20p per mile for a car journey and the HMRC rate is 55p (from 06-04-2026), you can claim tax relief on the 35p shortfall per mile. This relief reduces your taxable income by the shortfall amount, so you get back the income tax you overpaid on that difference. If you are a basic-rate taxpayer, that means 20% of the shortfall comes back to you. You claim MAR on your Self Assessment tax return or by writing to HMRC if you do not normally file Self Assessment. You will need a mileage log to support the claim — HMRC will expect to see the date, purpose, locations, and miles for each journey. MileageClaim is primarily designed for sole traders and directors, but the mileage log it produces can be used as supporting evidence for a MAR claim.

Yes, in certain circumstances. HMRC allows employees and directors to claim flat-rate subsistence costs when they are required to work away from their normal place of work for a qualifying period. The HMRC benchmark rates are: £5 for journeys lasting 5 hours or more, £10 for journeys lasting 10 hours or more, and a higher rate of up to £25 for trips that include an overnight stay. These are claimed in addition to mileage — you can claim both on the same journey if the qualifying conditions are met. Subsistence rules are more complex than mileage rules: there are conditions around irregular workplaces, the 24-month temporary workplace rule, and what counts as a qualifying absence. Sole traders can also claim subsistence as a business expense, subject to the same conditions. MileageClaim's Pro plan (coming soon) includes subsistence tracking alongside your mileage log so both appear together in your year-end report. Always confirm subsistence claims with your accountant, as the rules are stricter than those for mileage.

MileageClaim is not a government service and is not formally endorsed or approved by HMRC. It is worth noting that no commercial mileage tracking tool can be 'HMRC-approved' in any official sense — HMRC does not run an accreditation scheme for third-party software of this type. What MileageClaim does is use the current HMRC Approved Mileage Allowance Payment (AMAP) rates in every calculation, and produce mileage records that meet the documentation standard HMRC expects to see if it ever reviews your claims. HMRC requires a mileage log showing the date, business reason, start and end locations, and miles for each journey — MileageClaim records all of this automatically. The tool is designed to make compliance straightforward, but it is not a substitute for professional tax advice. If you have specific questions about whether a particular journey qualifies or how to treat mileage in your accounts, always speak to a qualified accountant or tax adviser.

A business journey is any trip made wholly and exclusively for business purposes. Qualifying examples include: travelling to a client's premises, visiting a supplier, attending a business meeting or conference, travelling to a temporary workplace, or visiting a site directly relevant to your work. Your regular daily commute from your home to your usual, permanent workplace does not qualify — HMRC treats this as a personal expense, not a business one. However, there is an important exception for people who work from home: if your home is your regular principal place of work (as it often is for sole traders, home-based consultants, and directors with no separate office), then trips from your home to a client, supplier, or any other external business location generally do count as business travel, because you are travelling away from your normal workplace rather than commuting to it. For company directors, travel to a temporary workplace — somewhere attended for a limited period or specific purpose — usually qualifies, while travel to a permanent workplace does not. Keep a clear record of the business reason for every journey, as HMRC will want to see this if they ever review your claims.

Yes, in most cases. If your home is your regular place of work — as it commonly is for sole traders, freelancers, and directors with no separate business premises — then trips from your home address to external locations such as client premises, supplier sites, or business meetings generally qualify as business travel and can be claimed at the HMRC mileage rate. This is because HMRC treats your home as your normal workplace in these circumstances, so any trip to a client or business location is a genuine business journey, not a commute. The rules become more nuanced if you also have a permanent external office or workplace. In that case, trips from home to your permanent office are a commute and do not qualify. However, trips from home to a client on the same day — even if you stop at your office on the way — can sometimes still be partially claimed. If your working situation involves both a home office and external premises, speak to your accountant to confirm which journeys qualify.

This is very common and completely fine. HMRC's flat mileage rate is designed specifically for vehicles used for both personal and business purposes — you only claim for the business journeys, and personal journeys are simply not recorded. Each entry in your mileage log should have a clear business purpose attached to it (for example, 'client meeting — Smith & Co, Leeds'). Purely personal journeys — school runs, supermarket trips, social travel — are never claimed and never appear in your mileage log at all. When using the AMAP flat rate, you do not need to calculate what percentage of your total annual mileage was for business — that calculation is only necessary if you are claiming actual vehicle costs. Using the flat rate means each qualifying business journey is claimed individually at the per-mile rate, with no need to apportion annual expenses. The simplest approach is to log each business journey in MileageClaim as you make it, leaving personal journeys completely unrecorded. This keeps your mileage records clean, accurate, and easy to defend.

Yes. HMRC allows you to claim mileage for each vehicle you use for business purposes during the tax year. Each vehicle type has its own HMRC rate — cars and vans at 55p/25p from 06-04-2026 (45p/25p before), motorcycles at 24p, and bicycles at 20p. The 10,000-mile threshold for cars applies per vehicle independently — it is not a combined total across all your vehicles. So if you use both a car and a motorcycle for business, the car mileage runs against its own 10,000-mile threshold while the motorcycle mileage runs at a flat 24p per mile regardless of how many car miles you have driven. If you use more than one car during the year (for example, you change your car mid-year), HMRC's position is that the 10,000-mile threshold is shared in combination across both cars for that tax year — so it does not reset when you switch vehicles. Your mileage log should clearly record which vehicle was used for each journey, including the registration number where possible, as this makes it straightforward to reconcile if HMRC ever asks questions.

No — and this is one of the biggest practical advantages of using the HMRC flat mileage rate. When you use the Approved Mileage Allowance Payment (AMAP) flat rate, you do not need to keep petrol receipts, diesel receipts, or any other vehicle cost receipts. The flat rate is specifically designed to cover all vehicle running costs in a single pence-per-mile figure: fuel, insurance, servicing, repairs, MOT, and depreciation. What you do need is an accurate and complete mileage log for every business journey. Each entry should include: the date of the journey, the start and end locations (postcodes are ideal), the reason for the journey (for example, 'client visit — Acme Ltd, Bristol'), and the distance in miles. HMRC can and does ask to see mileage records during compliance checks and tax investigations — having a complete, organised log is essential. MileageClaim stores all of this automatically every time you add a journey, so your records are always ready and you will never be caught without them.

HMRC requires a mileage log that contains specific information for each business journey: the date the journey took place, the purpose of the journey (for example, 'supplier meeting — ABC Supplies Ltd, Manchester'), the start point and destination (postcodes are ideal), the number of miles driven, and the HMRC rate applied. You should also keep a running total of your business miles for the year, which MileageClaim calculates automatically. You do not need fuel receipts when using the flat rate. It is also good practice to record the vehicle type and registration number, since HMRC applies different rates to cars, motorcycles, and bicycles, and may want to verify which vehicle was used. For sole traders, HMRC recommends keeping business records for a minimum of five years after the 31 January Self Assessment submission deadline for the relevant tax year. For limited companies, records should be kept for six years from the end of the accounting period. MileageClaim stores all required information automatically and can generate a structured PDF that meets these documentation requirements at any time.

For sole traders, HMRC requires you to keep business records — including your mileage log — for a minimum of five years after the 31 January Self Assessment filing deadline for the relevant tax year. For example, records for the 2025/26 tax year (which ended 5 April 2026) must be kept until at least 31 January 2032. The filing deadline for that year is 31 January 2027, and five years from that date is 31 January 2032. For limited companies, business records must be kept for six years from the end of the accounting period they relate to. HMRC can open an enquiry into your tax return at any point within these windows, so it is important that your mileage records are complete and accessible for the full retention period. MileageClaim stores your journey records securely in your account for as long as your account is active. We strongly recommend also downloading your annual PDF reports and saving them in a separate secure location — such as cloud storage or with your accountant — as an additional offline backup.

MileageClaim makes this straightforward. From your dashboard, select the tax year or financial year you need and click 'Download report'. MileageClaim generates a clean, professional PDF that contains: your name and business details, the reporting period covered, total business miles driven, a breakdown by vehicle type, the total HMRC mileage claim value (with the 10,000-mile threshold split shown clearly for cars), and a full journey-by-journey log showing the date, business purpose, start and end locations, distance, HMRC rate applied, and individual claim value for every journey in the period. You can email this PDF directly to your accountant, upload it to a shared folder, or save it alongside your other year-end financial documents. Your accountant does not need any special software or access to MileageClaim — the PDF is entirely self-contained and includes all the information they need to prepare your accounts or tax return. It also provides a clear, timestamped audit trail should HMRC ever request evidence of your mileage claims.

For Self Assessment, you can amend a previously submitted tax return within 12 months of the original filing deadline. For example, if you submitted your 2024/25 Self Assessment on 31 January 2026, you have until 31 January 2027 to amend that return and add any business mileage you initially missed. Beyond the 12-month amendment window, you generally cannot claim for mileage from past years. For limited company directors, the company can only reimburse you for mileage that is properly documented at the time — attempting to back-date reimbursements years after the fact is likely to be challenged by HMRC. Going forward, the best practice is to log journeys as you make them or at least once a week while they are fresh in your memory, so nothing gets missed and your records are always up to date. MileageClaim is designed to make regular logging quick and easy — most journeys take less than 30 seconds to add — reducing the chance of falling behind.

On your Self Assessment tax return, business mileage is claimed in the 'self-employment' or 'partnership' pages, under vehicle and travel expenses. When using the HMRC simplified flat rate, you enter the total pound value of your mileage claim — not the number of miles. For example, if you drove 8,000 business miles in 2026/27 at 55p per mile, you would enter £4,400 in the vehicle expenses field. If you drove more than 10,000 miles, you calculate the two-part amount (10,000 × 55p, plus the remaining miles × 25p) and enter the combined total. For 2025/26 and earlier, use 45p for the first 10,000 miles. Look for the field labelled 'mileage allowance' or 'simplified vehicle expenses' depending on which tax software or online service you use. You do not need to attach your mileage log to your tax return, but you must keep it for at least five years as HMRC may request it during an enquiry. The MileageClaim PDF report shows your total claim amount clearly — you can transfer this figure directly to your return without doing any additional calculations.

The UK personal tax year runs from 6 April to 5 April the following year — for example, 2025/26 runs from 6 April 2025 to 5 April 2026. This is the reporting period used for Self Assessment tax returns, and for PAYE mileage payments made through payroll. A company's financial year (also called its accounting year) is the 12-month period agreed when the company was formed and registered at Companies House. It can end on any calendar date and often does not align with the personal tax year. For example, a company might have a financial year running from 1 January to 31 December. This matters for mileage reporting because a director presenting mileage claims to their accountant may need the figures grouped by the company's financial year rather than the personal tax year. Having data grouped by the wrong period creates extra work for your accountant and can lead to errors in your accounts. MileageClaim lets you choose which year type to use when generating your PDF report, so your mileage figures always match the period your accountant is working with.

When you log a journey, you enter the start and end postcodes. MileageClaim uses the Postcodes.io API — a free, UK government-backed postcode data service — to look up the precise geographic coordinates of each postcode and calculate the straight-line (crow-fly) distance between the two points. This distance is then multiplied by the applicable HMRC AMAP rate for your selected vehicle type, with the 10,000-mile threshold applied automatically for cars and vans. One thing to be aware of: the crow-fly distance between two postcodes is typically shorter than the actual road distance you drive. HMRC does not specify whether road distance or crow-fly distance should be used when making mileage claims. Many businesses use crow-fly distance because it is consistent, easily defensible, and conservative — it never inflates your claim. If your actual driven route is significantly longer due to road layouts or geography, you may prefer to record the actual road distance manually instead. Your accountant can advise on the most appropriate approach for your situation.

Yes — the Free plan is genuinely free, with no time limit, no trial period, and no payment card required. It includes 1 business (either a sole trader profile or a limited company), unlimited journey logging, automatic HMRC mileage rate calculations with the 10,000-mile threshold applied automatically, tax year reporting, and PDF report downloads. This covers everything the vast majority of UK sole traders and single-company directors need day-to-day. A Pro plan at £5 per month is coming soon. Pro will add support for multiple businesses, company financial year reporting (in addition to the personal tax year), subsistence tracking alongside mileage, full export history, and priority support. An Accountant plan at £15 per month is also in development for accounting practices that manage mileage records on behalf of multiple clients. Both paid plans are entirely optional — the Free plan will remain fully functional and free forever.

Your data is stored securely and is only used to provide the MileageClaim service. We never sell your personal data to third parties. MileageClaim is operated by Companies999 Ltd, registered in England and Wales, and we comply fully with UK GDPR and data protection law. Your mileage records, business details, and personal information are held on secure servers. Under UK GDPR, you have the right to access the data we hold about you, request corrections to inaccurate data, request deletion of your account and all associated data, and object to or restrict processing in certain circumstances. To request deletion or to exercise any of your data rights, email us at privacy@mileageclaim.co.uk and we will respond within 30 days. Full details of how we collect, use, and store your data are set out in our Privacy Policy, which you can find in the footer of every page.