Claiming Tax Relief on Mileage

Author: Josh Hall · Last updated 1 April 2026

A considerable number of professions require employees to travel extensively. In the majority of cases, employers will pay their workers for the mileage that they incur while carrying out their duties. However, some individuals are not aware that there are potentially beneficial tax implications for those who travel as part of their job.

The current tax system allows for what are known as 'mileage allowance payments'. Under this system, per-mile mileage payments made by an employer to an employee are not subject to Income Tax, as long as they are paid at or below the rate set by the government.

In the first instance, it is important to note that only business travel qualifies for these tax-exempt payments; if you also use a Company Car for personal purposes, tax exemptions will not apply to mileage incurred as a result of non-business activities. Even factoring this in, however, the mileage allowance payments system can still represent a significant tax saving.

Statutory Mileage Rates

The government has established 'statutory mileage rates', which determine the acceptable amount that can be paid to an employee per mile of business travel. These rates differ depending on the vehicle used, and the number of miles for which a claim is being made. The following rates apply to 2025/26:

For business travel in cars, the first 10,000 miles can be paid at 45 pence per mile, and all subsequent miles at 25 pence per mile.
Travel on a motor cycle or bicycle, regardless of the number of miles travelled, can be paid at 24 and 20 pence per mile respectively.

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The HMRC form P87 provides an opportunity for employees to list their employment-related expenses for the purpose of tax relief. Information concerning business mileage should be given on this form.

The form requires you to give details of your business travel, including the number of miles travelled using each type of vehicle. You will then be required to calculate the total amount of tax relief to which you are entitled.

Further Relief

Any mileage allowance payments made by your employer are tax free by default. On your P87 form you must, therefore, provide the total sum received in the tax year in such payments. This will then be deducted from your total earnings, along with any other Expenses That Attract Exemptions, to establish your total tax liability for the year.

In many cases, however, employees do not receive as much tax relief as they are entitled to. The total relief available is based not on the mileage allowance payments received from your employer, but on the total number of miles you have travelled. As such, if you have received allowance payments for fewer miles than you have travelled, you will be entitled to further relief.

HMRC will multiply the number of miles travelled by the relevant statutory mileage rate to calculate your total exemption. From this will be subtracted any mileage allowance payments that you have received. The resulting sum will be your remaining exemption. This can be offset against other employment related earnings.

You may find it useful to download the P87 form from the HMRC website in advance of your annual tax return. Finally, as with any tax matters, your Tax Office will be able to assist you with any queries.

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70 Comments

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Ian 16 Jun 2025

Hi all, advice please. I have started work on PAYE recently in addition to my self employment. As part of my PAYE employment I have a main base but also travel to additional company premises. Can I offset the mileage and claim current HMRC allowance of 45p per mile for the business mileage between premises. Thank you

Sharon 2 Jun 2019

I’ve just started working for a care firm who pays 30p a mile how do I claim up to 45p what do I need to do to claim the 15p

White 6 Apr 2019

Hello there im looking for advice on my current role i have been told i need the fill out a self assessment tax return due to my company paying 0.22p per mile with 30000 miles do in the year. i have seen that the government guidelines is 0.45p up to 10000 then 0.25p after have got rights to claim? Plus claiming for cleaning of chef uniform as well because i wash them myself Any help and information on this would be a great help. Many thanks

sim 29 Mar 2019

hi I get payed 45p per mile of my employer for business miles but universal credits say that it's income and reduce my monthly child tax credits payments. but the 45p per mile is money I have already payed out of my wages so it's like I don't benefit form calming

rupert 13 Jan 2019

Hi, I use my personal car for visiting clients around the country, the company pays be back the fuel I have put in the car for that journey example £50.00. They don't however pay any pence per mile, can I still claim back the 45p per mile for my work journeys ? Many thanks.

Mikey 7 Nov 2018

I work on building sites as an employee but get no mileage allowance or extra money to cover fuel and travel in my own vehicle. Should I be legally entitled to some form of payment or is it completely at my employers discretion? And then also if that is the case are there any other ways I can get tax relief so that I can help counter the costs? Thanks

Dom 13 Sep 2018

I am paid a £250 per month travel allowance with my salary, and claim monthly travel expenses each month from the company for any expenses over £150 (e.g, incur £200 travel expenses then I can claim £50. As they only pay 20p per mile, I was expecting to claim tax relief on the additional 25p. However, if I only travel 500 miles on month, the nominal £100 mileage expenses is not paid due to the £150 excess policy. Does this mean I can claim tax relief on the full 45p per mile for those instances where mileage is not paid, or can I only claim for the 25p difference even if I am not reimbursed directly ?

Littledigidi 10 Sep 2018

Hi - I have a fuel card, the majority of my mileage is work related. can i claim any tax back on this. My company pay for all my fuel.

bobby87 15 Jun 2018

Iv started working for a care company that pays 35p per mile the government website gov.uk says that were supposed to get 45p per mile plus 5p a mile per passenger. im trying to fill in the forms to get tax relief on traveling costs but because our first clients can literally be forty miles away and last client nearly the same from home, a good quarter to nearly half of my mileage is classed as commute its virtually pointless i'm spending more out than im making to cover it iv never claimed mileage before this is the first job iv ever had to do this and its making me rethink my entire career, the p87 form says i need my annual mileage i dont know it because iv only been there three weeks and more packages can come and go so my mileage will change so i cant answer half the questions on it its driving me crazy and im stressing the hell out

TheTaxGuide Editor 15 Jun 2018

If you’re a worker and you’ve tried solving a problem or concern informally by talking to your manager but you’re not satisfied, you can make a formal grievance complaint in writing.

Kath04 12 Jun 2018

Could someone please give me advice, I have received a tax bill for £2000 as my employer has stated that I have a fuel card to go with my company car, I have worked for the company for 2 years and never been taxed on the fuel card until this tax year. I have only used the car for personal use 132 miles in total for the year and my employer has charged me 10p a mile for using it. I have never been informed that the fuel card was a benefit, is there anything I can do to appeal against this.

Phil 3 May 2018

I did 10,000 business miles in my private car in the 16/17 tax year. I have a company fuel card and I am taxed on it through a p11d. Am I able to claim the 45p on business miles completed?

TheTaxGuide Editor 26 Apr 2018

You would have to contact HMRC directly regarding this matter

Roberto 26 Apr 2018

Hi There, I wonder if you can help me? I have recently changed jobs. I had mileage allowance in my previous job, and I claimed over 7,000 miles at 45p from July - February. In my new job, I have the same package; however is there a limit to the amount of mileage I can claim for, or can I claim up to another 10,000 at 45p at this new employer too, or is it the case that the mileage is classed against me, so I can only do 10,000 miles at 45p regardless of the company that pays it?

Please help 24 Apr 2018

I’ve filled in my tax return and all it says I’m due is the 20 percent I’ve paid on 11500 through CIS which is 2300. I was expecting more as I’ve put 4000 business miles down and expenses for tools, work clothing. Should they not be paying me

Hessie 17 Apr 2018

Any help on this mileage question would be really appreciated! Also, if I paid no tax one year (without taking into consideration an allowance for the use of my private vehicle) how can I benefit from this - can I carry it over into another year where I did pay tax? Many thanks in advance .....

Hessie 14 Apr 2018

Hi I am the sole Director of a limited company working from home and do a Self Assessment tax return annually. My tax affairs are very simple!! Income from Dividends and PAYE only. However, I use my personal car for business site visits and meetings but I am not reimbursed for this use / mileage by my Company. Can I claim the cost of these journeys as a personal tax allowance? Some mileage may be paid to my Company by a client as a disbursement on an invoice but many miles are not chargeable. As it’s my car can I claim all mileage as a tax allowance? Any help gratefully received!!

Rich 14 Apr 2018

I've claimed mileage relief previous years, and they sent me a cheque, but when I try this year the Gov website claims it's already in my tax code. Is this possible as how would they know what mileage I did last year?

TheTaxGuide Editor 10 Apr 2018

You'll need to send it to HM Revenue and Customs. The address is on the form. Please also

Tracy 9 Apr 2018

Could you please tell me where I send my completed P87 for Tax year 6th April 2016 - 5th April 2018 Kind Regards

David 21 Mar 2018

On a similar note can someone please advise. Until recently I used my car for business use and was reimbursed at 11p/mile, plus I was also paid a £6k car allowance which was taxed at 40% in the normal manner with my monthly salary. I deduct my private miles via monthly mileage log when making mileage claim thus no benifit in kind applicable. Over the last 3 years I have claimed back the tax relief on the difference between what paid by my employer and the HMRC mileage rates via self assessment, which has been around £2k per year. I have recently changed jobs and again use my car for business miles, with car allowance also paid. The only difference is that my employer will provide a fuel card for business use only again. I have to complete a monthly mileage log with my private miles then deducted from my monthly pay at a nominal rate thus no benefit in kind implications. Given that I am not paying for my fuel directly and reclaiming from my employer as they are providing fuel card, can I still claim the tax relief on the business miles in the normal manner? In effect it is really the same thing. I was simply going to use the cost of the business fuel within the self assessment here, but I have been given conflicting advise on this. Can someone please advise on this. Thanks

Milometer 13 Mar 2018

Can I claim for part-miles or only complete miles, i.e. so that any fraction of a mile is discounted?

TheTaxGuide Editor 26 Feb 2018

You can see all you need to know which

chendre 25 Feb 2018

Hi, I've just started working as a self employed courier driving my own car delivering parcels to customers addresses with online orders. What am I able to claim as regards my fuel, insurance and car expenses? I have also been offered money off fuel. Does this have any tax implications?

TheTaxGuide Editor 12 Feb 2018

Yes, you are allowed to claim for this, if it forms part of the job you are paying tax on.

Pianoman 12 Feb 2018

I am a pensioner who has a part time job as a musician and pay tax as self employed. I drive a round trip of approx 56 miles twice a week to my work. Am I allowed to claim for the mileage against my income tax

TheTaxGuide Editor 3 Nov 2017

As a rule, you are entitled to tax-free reimbursement for costs of travelling that you are obliged to incur in order to do your job; if your employer does not reimburse these expenses, you may be able to claim a deduction from your income and so obtain a tax refund. Normally, an employer would make an allowance for wear and tear - but you would have to speak to your employer directly regarding this.

Pierre 2 Nov 2017

I supply my own car for work and the company supply me with a fuel card Can I claim for excessive wear and tear on my vehicle

Paul 6 Oct 2017

Hello Can I claim mileage allowance from my old employer for previous years, I was made redundant in April and never submitted all my business miles. Am I still entitled to claim retrospectively?

Reauna 17 Sep 2017

I only realised this year that I'm eligible for tax relief but I am having a problem claiming! I have a company car but my company only pay reimburse me 10p per mile. They have asked for fuel receipts which I don't have- I didn't realise I would need them. Can I get around this some way as I expect I'm due the relief? At least some of it! :(

Deni 12 Aug 2017

I claim mileage relief every year. The first time I did this was I was paid a small amount of the total. My tax code was then adjusted to repay the remaining amount to me over a period of years. Each year from then onward's I only get my tax code adjusted and no money. Is this correct or can I ask for the full amount each year?

timmo 7 Jul 2017

Hi , I am a retired firefighter not yet in receipt of a state pension but am in receipt of occupational pension , I work as and when for a local funeral director but have to travel from home to various church locations and crematoriums to carry out tasks for my job throughout the county. My question is can I claim tax relief for using my own vehicle to travel to and from my different places of work, I travel approx 350 miles per week and do not receive any mileage allowance from my employer. Appreciate any help.

Ashi 6 May 2017

Hi I am a company' s director . Can I use my husbands 2nd car for my company ' s usage and claim milage. Or car has to be on my name?

Tab 14 Feb 2016

I'm starting a new job that pays me 28p/ mile travel expenses. Can I get the full amount of 17p back from the government to make it up to the recommended 45p or only 20% as my wages are taxed at this rate? My employers said I could "claim the rest" but 20% back wouldn't cover my costs.

TheTaxGuide Editor 7 Oct 2015

I can only direct you to the gov.uk site here which gives more information on how you can claim.

Kaysie 6 Oct 2015

My husband has just changed his job. His previous employers have always reimbursed him for his mileage. His new employers however have just told him that he can only claim back a certain amount and the rest will have to be claimed back through HMRC. His business mileage will be approx 45,000 miles per year as he will be covering all of the U.K. Can you please help as we don't know where to begin.

Priti 2 Aug 2015

Hi! I'm working as a carer. Like going to people houses for visit. Would you mind telling me how do I claim my milege as my manager said we have to claim our self. They won't do that for us. Thank uou

dunn999 18 Jul 2015

Hi. I currently travel 120 miles to my place of work and rent a flat to stay there when Im working. Can I claim any mileage relief or property rent relief for these costs Many thanks

TheTaxGuide Editor 29 May 2015

@Sarah - As specified in the article you would be allowed to claim tax relief on mileage. HMRC allows tax payers to claim 45 pence per mile for travel undertaken in the course of your work. You will need to keep a track on all the miles you have covered as part of your job, which includes travelling to see clients, but also journeys you make as part of your job for seminars, training etc. I have included the form P87 which is the form you need as an employee to list your employment-related expenses for the purpose of tax relief here. At the bottom of the page there is also a guidance leaflet which should help you with the additional information you will need about when to submit etc.

Sarah 26 May 2015

I have just started a care job and been told they do not pay any milage/petrol to get from client I don't get any travel pay at all only pay for time in tere homes. Who do I claim what would I need to do, and how often? Really not very good with things like this have no idea were to start pls help x

Dan Editor 9 Dec 2014

@hawks - as a general rule i think you can only claim it back through your company via expenses unless you are self-employed. Plus, because it is a company car they take on the general wear and tear of the car, which is why it is only standard 12p per mile.

hawks 8 Dec 2014

hi please can you tell me if i can claim mileage back through inland revenue for driving a company lease car, i currently get 12p a mile but understand you can claim back upto 45p a mile. Does this apply to me despite driving a lease car or can only the employer claim it back.

kaz 5 Nov 2014

hi could you please help me, my daughter has worked for a nursing agency and was having to use her own car, due to all the running around she had to get 2 new tyres, a new clutch and was being payed 35p per mile. Is she able to claim back any of the car bits or the rest of the mileage as she lost out on alot of her wages for the fuel and has been told she cant claim back her mileage due to the fact she didnt pay much tax as it was her 1st job. shes tried to fill in the p87 form but its so confusing for her . someone please help ,thankyou

Viv 6 Apr 2014

I work for a charity as a carer. I am asked to travel in my own car to each call and often have to take clients out. I am paid 0.39 pence per mile, but not able claim all the mileage. I often find that what I am unable to claim, outweighs what I can. The amount that we are able to claim has been the same for the past 22 years. They said it was kept below the rate of paying tax by keeping it at this rate! I have just heard through a friend, that there is a way to claim back what I am unable to claim through work, is this correct. If so how?

Oi69 23 Dec 2013

I have worked for a company for 20 years they have supplied a company car at the end of the month i do my expenses deduct my personal millage and they pay me the amount left. Now they want to change it they want to add the busines miles up at the end of the month and they will pay me 15p per mile for every busines mile. I have done some working outs on this and find it unfair i have a car that i could get 50mpg out of the IT side of the company do get this but all they carry is a laptop most of the time nothing else i have a boot full of heavy gear roof bars and ladders on the roof sometimes im lucky to get 38mpg but if i took everything out ide get 50mpg. Is this fair are they aloud to do this ?

Steve 18 Dec 2013

Hi, I wonder if you can help. I have a company car and travel 100 miles per day to and from work. I pay for fuel myself and don't claim anything for this. Occasionally I am asked to travel elsewhere for meetings, when I do this I can claim 14p per mile. Can I claim for anything through the inland revenue? I'm really keen to get some help with this.

Simon 3 Apr 2013

I operated as a self-employed courier with my own vehicle between 2001 - 2008 but never claimed tax relief or a refund for my mileage. Would I still be able to claim this now? Thanks

Trace 11 Mar 2013

Hi I work for a care company we get 18p per mile but they saying that I can't get any tax relief because I don't earn enough so I don't pay tax. Is there any way I can get something back only I'm paying to go to work. It's not fair if you can't just because I don't pay tax. A lot of my company only work 16-25 hours per week so no one pays tax but our company won't pay the up to date mileage of 45p please help I'm really stuck on what I can do only it's costing me a small fortune.

Nic Buffham 27 Jan 2013

I am trying to complete a p87 and notice that it states if your allowable expenses exceed £2500 then you need to complete and Self Assessment return. Can you clarify if this means the final figure of the total expenses at the end of the form or does it mean the amount you have already recieved from my employer? Many thanks NiC

Vicky 7 Nov 2012

Hi, I have previously left a job where a travelled 67miles each way for work for 5-7days a week depending on my rota. This was for HMP. Is there a way I can claim tax back on my mileage? Thanks

nobby 24 Sep 2012

hi, how far back can i claim for this? and also my fiance has a lease car for the NHS and does alot of miles for work, is she entitled to this?

Fahmida 24 Aug 2012

Hi I am carer I am working with manchester Asian care I start work in. April 208 how I claim my millege the agencey not pay any thing for milling Plesse help me thank u

Sophi 9 Aug 2012

Hi I am an auditor and therefore travel around 90% of the time to client sites, I get paid mileage allowance for the shorter of the office to the client and my house to the client @ 45p per mile - does this mean that I can claim the additional miles when my house was further away than the office? Thanks

Tembi 4 Jul 2012

I work for a nursing agency which does not pay travel allowance for any NHS shifts. How do I claim tax relief on mileage and how far back can I claim.

riat 30 May 2012

I worked part time for care company 2011 - 2012. I travelled to work for which I received no expenses and did not expect to do so. At work II travelled around a client group, 2 days pw, and travelled approx 2200 miles in the year. The company did not pay any expenses for this either as it was their stated policy. Am I entitled to any relief on the tax that I have paid and, if so, roughly how much and how do i claim it?

gunner 22 May 2012

i travel a round trip of about 80 miles to and from work each day, i worked locally when starting the job just down the road but things changed and by no choice of my own i got transfered ,im on minimum wage and find it ever incressingly hard just to get money for petrol every week just to get to work , can the inland revenue help some how

Avaya Editor 18 May 2012

@ suebabe and helen you need to complete form P87 and send it to your tax office. They will then do the necessary calculations and if tax relief is due, you will receive a repayment.

Helen 16 May 2012

I work for local government and in January 2011 we were centralised to another location. We are being paid travelling expenses for 4 years for the excess travel to our new location at a rate of 25p per mile and this is shown on our pay slips as a taxable expense. Can we claim the tax back for this and if so can we use the P87 form?

Suebabe 14 May 2012

My employer has added my petrol reimbursements to my gross pay, giving a false reading on my P60 for the year ending 2012. Is this right? It looks as if I am earning £600 a year than I actually do.

Pat 14 May 2012

The updated form you need can be found on the HMRC website under forms/p87.pdf

Kirst 11 May 2012

I've been trying to use the P87 form off the HMRC website but the form is still showing the 40p figure from the year 2010/11 How do we get a current copy? Or should we just use this form and hope that HMRC can work it out?

Tomo 1 May 2012

I work away from home and have done for the past 6 years. The company pay a monthly 'car allowance' which is £300 per month (which is taxed), with the remainder I am expected to buy a car and keep it in a good state of condition. I travel quite abit around 800 miles per week, which obviously quickly devalues the car. In term of fuel expenses I effectively fill up and put the receit into my comany and they re-emburse through my expenses(non-taxable), Am I entitled to any 'wear and tear' or any additional benifits - I'm having to change my car every two years!!!!

Y 31 Jan 2012

I didn't know I could claim this. I have unclaimed tax relief on mileage from 2007. How far back can I go? Can I claim retrospectively?

clive 30 Nov 2011

I work for a security firm as a relief officer. I travel to different sites around Bristol which I do not recieve any allowance for. I also travel to Wales which I do recieve 28p a mile for after the first 20 miles, can I claim for the mileage travelled in Bristol alone or do I need to add both sets together?

lee 26 Nov 2011

I work in retail for the same company for the last 7 years, but worked in different stores around the north east, can i claim for my mileage to and from work, I have never worked in a store longer then 2 years, i have never recieved payment from my employer for mileage, but i have heard i can get txt relief.

claire 27 Sep 2011

Hi, I work as a carer in the community I get paid 25p a mile how do I claim tax on the goverment scheme for mileage and do I have to fill forms out every week?

Mick 20 Aug 2011

Question. Hi my daughter works as a carer in the community for the past for years , she receives 25p per mile for her mileage at work , what can she claim back against tax and how , she also launders her overalls at home ! Cheer any advice would be great , regards Mick port !

Phil 7 Jul 2011

Can one claim the difference between what the company pay (say 15p per mile) and what the IR say you can have (say 40p per mile) ie 10000 mls @ 25p per mile = £2,500.00 refund from IR, or does it only apply to own cars?

gkrazyh 15 May 2011

Hi, I work for a nursing agency. I claimed part relief off the 40p per mile as the agency paid 15p per mile upto £10.00. After much communication with HMRC they granted the relief. Normally you receive a cheque but on this occasion I received relief through my PAYE tax allowance. When I telephone HMRC they said I should pay the 20% on the mileage expense that was granted. Are they able to do this? I was hoping for a cheque so I could replace my old car with a more upto date enviromentally friendly car. I did recieve some releif but through my salary. please help on this matter?

Mazza 28 Apr 2011

I work for radios community care and they pay 20 per mile on petrol allowence. There is a sceme that the government have, and they match that. But they pay it at the end of each tax year. Can you tell me how I go about claiming this back, where I may need to go. the form I may need to fill out, and what I may need to take with me.

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