HMRC mileage refund explained

If you use your own vehicle for work, you may be able to claim back mileage from HMRC. This applies whether you are an employee, self-employed, or a director, and whether or not your employer already pays you a mileage allowance. 

Mileage tax relief allows you to reclaim tax on the cost of business travel that you have paid for yourself. Many people miss out simply because they are unsure what counts as business mileage, how much they can claim, or how the process works in practice. 

This guide explains how to claim back mileage from HMRC, which journeys qualify, how much you can claim, and how to submit your claim correctly, without risking problems later. 

What does “claim back mileage from HMRC” mean? 

Claiming back mileage from HMRC means receiving tax relief on the cost of using your own vehicle for work-related journeys. 

HMRC allows this through Approved Mileage Allowance Payments (AMAP). These rates are intended to cover fuel, insurance, servicing, repairs, depreciation and general running costs. 

If your employer pays you less than the HMRC approved rates, or nothing at all, you can usually claim tax relief on the difference. If your employer pays the full rate, there is nothing further to claim. 

This is not a loophole or a special allowance. It is a recognised tax relief built into UK tax rules. 

HMRC mileage rates explained 

HMRC currently allows the following mileage rates: 

• 45p per mile for the first 10,000 miles by car or van 
• 25p per mile for any miles over 10,000 
• 24p per mile for motorcycles 
• 20p per mile for bicycles 

These rates apply per tax year, not per employer or per job. 

If your employer pays you 30p per mile, for example, you may be able to claim tax relief on the remaining 15p per mile from HMRC. 

Who can claim back mileage from HMRC?

You may be able to claim back mileage from HMRC if you are: 

• A PAYE employee who uses their own vehicle for work 
• An employee paid less than HMRC mileage rates 
• Self-employed and using your own vehicle for business 
• A company director travelling for work 

What matters is how the journey is classed, not your job title. 

The rules differ slightly depending on whether you are employed or self-employed, but the underlying principle is the same. You can claim tax relief on qualifying business travel that you have paid for yourself. 

What journeys count when you claim back mileage from HMRC? 

To claim back mileage from HMRC, the journey must be for work, not simply to get to work. 

Examples of claimable business mileage include: 

• Travelling between offices, depots or sites 
• Visiting clients or customers 
• Attending external meetings or training 
• Travelling to a temporary workplace 
• Moving between multiple work locations in a single day 

Hybrid and multi-site working is common, and HMRC accepts this where the journeys meet business criteria. 

What journeys you cannot claim for 

You cannot claim back mileage from HMRC for: 

• Normal commuting between home and a permanent workplace 
• Private journeys, even if you make a brief work stop 
• Travel that is mainly personal rather than business 

This distinction is important. Incorrectly claiming commuting mileage is one of the most common reasons HMRC queries claims. 

Worked example: claiming back mileage from HMRC 

Here’s a simple example to show how mileage tax relief works in practice. 

Chris drives 6,000 business miles in a tax year using his own car. 

• HMRC approved rate: 45p per mile 
• Employer mileage paid: 30p per mile 

HMRC allowance
6,000 × 45p = £2,700 

Employer payment: 
6,000 × 30p = £1,800 

Difference: 
£900 

Chris can claim tax relief on the £900 shortfall. The amount refunded depends on his tax rate, but this still represents a meaningful return for travel he have already paid for.

How to claim back mileage from HMRC 

To claim back mileage from HMRC, you need to keep accurate records of your business travel.

HMRC expects you to record: 

• Date of each journey 
• Start and end locations 
• Purpose of the journey 
• Miles travelled 
• Mileage allowance received from your employer 

You then total your mileage for the tax year and apply HMRC’s approved rates, deducting any employer payments. 

You can estimate your claim before submitting it using a mileage tax relief calculator.

Claiming mileage using a P87 form 

If your total mileage tax relief claim is £2,500 or less for the tax year, you can usually claim back mileage from HMRC using a P87 form. 

This route is common for PAYE employees and does not require a full Self Assessment tax return. 

Claiming mileage through Self Assessment 

If your mileage claim exceeds £2,500, or if you are self-employed, you must claim back mileage from HMRC through a Self Assessment tax return. 

Mileage expenses are included alongside other allowable expenses to calculate your overall tax position.

How far back can you claim back mileage from HMRC? 

You can usually claim back mileage from HMRC for up to four previous tax years. 

Once this window closes, any unclaimed tax relief is lost. Claiming annually reduces admin, improves cash flow, and avoids digging through old records later. 

Why people miss out on mileage refunds 

Many people miss mileage refunds simply because: 

• They assume employer mileage payments cover everything 
• They are unsure what counts as business travel 
• They do not keep detailed records 
• They worry HMRC will challenge their claim 

Mileage tax relief is legitimate, but accuracy matters. Clear records and correct claims make the process straightforward. 

Common mistakes when claiming back mileage 

Some of the most common issues include: 

• Claiming ordinary commuting 
• Estimating mileage instead of recording it 
• Missing journey details 
• Forgetting to deduct employer mileage payments 

Avoiding these mistakes helps prevent delays and HMRC queries. 

How RIFT can help you claim back mileage from HMRC 

Claiming mileage tax relief is allowed under HMRC rules, but the details can feel unclear. 

RIFT helps you claim back mileage from HMRC accurately and confidently. We calculate your entitlement, check your records, and submit your claim correctly. 

If you travel for work, it is worth checking what you could be owed.

Claim back mileage HMRC FAQs 

Can I claim back mileage from HMRC if my employer pays mileage? 

Yes. If your employer pays less than HMRC’s approved rates, you can claim tax relief on the difference. 

Can I claim back mileage from HMRC for commuting? 

No. Normal commuting between home and a permanent workplace does not qualify. 

How long does it take to claim back mileage from HMRC? 

HMRC usually processes claims within 8 to 10 weeks, although this can vary. 

Do I need receipts to claim back mileage from HMRC? 

Fuel receipts are not required, but accurate mileage records are essential.