UK Guide · 2025/26 & 2026/27
Limited Company Director Mileage Claims: Complete UK Guide
When you use your personal car for company business, your limited company can reimburse you at 55p per mile from 06-04-2026 (45p per mile before) — completely tax-free to you, and a deductible expense for the company. Here is how to do it correctly.
Key facts for directors
- ✓Reimbursement up to 55p/mile from 06-04-2026 (45p/mile before) is fully tax-free for you personally
- ✓Your company deducts the reimbursement as a business expense — cutting Corporation Tax
- ✓No P11D required if you stay within HMRC AMAP rates
- ✓The 10,000-mile threshold applies per tax year (6 April to 5 April)
- ✓Limited companies must keep mileage records for 6 years
How director mileage claims work
When you use your own personal vehicle to travel for company business — visiting clients, attending meetings, going to your accountant — your limited company can pay you back at HMRC's Approved Mileage Allowance Payment (AMAP) rate (55p/mile from 06-04-2026, 45p/mile before). This reimbursement is:
Tax-free for you
Not salary or dividend income — no Income Tax or National Insurance applies.
Deductible for the company
Reduces the company's taxable profit and therefore its Corporation Tax bill.
This makes mileage reimbursement one of the most tax-efficient ways to extract value from a limited company.
Current HMRC AMAP rates
The same rates apply to directors as to sole traders and employees:
| Vehicle | First 10,000 miles | Above 10,000 miles |
|---|---|---|
| Car or van | 55p* | 25p |
| Motorcycle | 24p | 24p (no threshold) |
| Bicycle | 20p | 20p (no threshold) |
* Car and van rate increased to 55p from 06-04-2026. Before that date the rate was 45p per mile.
The tax saving in practice
Suppose you drive 8,000 business miles in the 2026/27 year as a director (all journeys from 06-04-2026):
The £4,400 reimbursement is completely tax-free to you. Your company's Corporation Tax bill is reduced by £1,100.
How to process the reimbursement
Log every business journey
Record the date, business reason, start and end locations, and miles for each trip. MileageClaim does this for you.
Calculate your total claim
Apply 55p up to 10,000 miles from 06-04-2026 (45p per mile before), then 25p above. MileageClaim calculates this automatically — including the threshold switch.
Credit your director's loan account
The reimbursement amount is added to your DLA as money the company owes you. Your accountant will help process this.
Draw the reimbursement
Transfer the amount from the company account to your personal account. Not a salary payment — no PAYE or NIC applies.
Record it in company accounts
Appears as a motor or travel expense. Reduces Corporation Tax. Provide your accountant with the MileageClaim PDF at year-end.
What counts as a business journey?
The same HMRC rules apply to directors as to other workers. Business journeys include:
- ✓Visiting clients, suppliers, or partners at their premises
- ✓Attending meetings, conferences, or networking events
- ✓Travelling to a temporary workplace (a location you attend for a finite period)
- ✓Trips to your accountant, solicitor, bank, or Companies House agent on company business
Regular commuting does not count. Travel from your home to a fixed permanent office is not a business journey. However, if you work from home and your home is your principal place of business, most client-facing trips will qualify.
P11D and National Insurance
If you reimburse yourself at exactly the AMAP rate (or below), no P11D is required and no Class 1A National Insurance is due. This is one of the main advantages of using the flat rate.
If you pay above the AMAP rate: The excess is a Benefit in Kind. It must be reported on a P11D and your company pays Class 1A NIC at 13.8% on the excess. Keep reimbursements at or below AMAP to avoid this.
What records does the company need?
HMRC requires the company to maintain a mileage log for all reimbursements made to directors. Each entry must include:
Date of the journey
Business purpose
Start location and destination
Number of miles driven
Amount claimed
Limited companies must keep these records for 6 years. MileageClaim generates a structured PDF that satisfies this requirement — your accountant can file it with the year-end records.
Frequently asked questions
Can a limited company director claim mileage?
Yes. As a director, you can claim mileage reimbursement from your limited company when you use your personal vehicle for business travel. The reimbursement is tax-free for you personally (up to the AMAP rate), and your company can deduct it as a business expense — reducing its Corporation Tax bill.
How does the director get reimbursed?
The most common approach is via the director's loan account (DLA). You log your business mileage, calculate the total claim at HMRC AMAP rates, and your company credits your DLA. You then draw that amount from the company as a reimbursement — it is not salary, so no PAYE or National Insurance applies. Your company records it as an allowable business expense.
Does director mileage go on a P11D?
No — as long as the reimbursement does not exceed the HMRC AMAP rate. Payments at or below 55p/mile from 06-04-2026 (45p/mile before) for the first 10,000 miles, and 25p/mile above 10,000 miles, are fully tax-free and do not need to be reported on a P11D. If your company pays you more than the AMAP rate, the excess must be reported on a P11D and will be subject to income tax.
What records does the company need to keep?
Your limited company must keep a mileage log for all reimbursements paid to directors. For each journey: the date, business purpose, start and end locations, miles driven, and the amount claimed. These records should be kept for 6 years. MileageClaim generates a structured PDF that serves as this documentation.
What if my company provides me with a company car?
Different rules apply if your company owns the car. In that case, HMRC's Advisory Fuel Rates (AFR) apply rather than AMAP rates, and the company car itself triggers Benefit in Kind (BiK) tax. MileageClaim is designed for directors using their own personal vehicles. Speak to your accountant if you have a company-provided car.
Keep your company's mileage records in order
MileageClaim generates the PDF your accountant needs at year-end. Log journeys in seconds, track the 10,000-mile threshold, and download your report — free for UK directors.
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