How much can I claim for business mileage?
Andrew Mclaughlin
Published Apr 19, 2026
45p per mile is the tax-free approved mileage allowance for the first 10,000 miles in the financial year – it’s 25p per mile thereafter. If a business chooses to pay employees an amount towards the mileage costs, these reimbursements are called ‘Mileage Allowance Payments’ (MAPs).
How do I claim mileage for my limited company?
If you use your personal car or van to travel to a temporary place of work and you’ve paid for the fuel out of your own pocket, you can claim the following rates as limited company expenses: Car and vans – 45p per mile for the first 10,000 miles and then 25p for every mile thereafter.
How much mileage allowance can you claim? If you’re self-employed, you can claim a mileage allowance of: 45p per business mile travelled in a car or van for the first 10,000 miles. 25p per business mile for each mile in excess of 10,000 miles.
How much do employers pay for business mileage?
Most employers tend to pay 45p per mile, as you’ll already be claiming tax relief on this as a cost to the business and employees are being paid the full amount they can receive, tax free.
Is it worth paying 45p per mile for employees?
As the employer, you’ll also save anything under the 45p per mile that you pay your employees, meaning there’s a benefit to you as well. The downside is that your employee has to register for self assessment and then prepare their own tax returns – an additional admin hassle that they may not necessarily want to deal with.
How to calculate business miles for business purposes?
Multiply your business miles by the AMAP rate to give you the total approved payment; Add up the mileage allowance reimbursements (if any) you got in the tax year from your employer;
How can employees claim tax relief on underpaid mileage?
How Employees can claim Tax Relief on Underpaid Mileage. 12 Sep, 2018 Self Assessment. If you do, you might find that your employer reimburses you at a rate that’s less than HMRC’s approved mileage rate of 45p per mile (up to 10,000 miles).
