HMRC mileage refund explained
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Claim the shortfall: If your employer pays less than the HMRC rate (45p a mile for the first 10,000 miles), you can claim the difference back as tax relief.
Temporary sites only: You can't claim for your daily commute. Relief only applies to travel between different work sites or to temporary locations.
Keep a log: You don't need fuel receipts, but you must record every journey’s date, destination, and purpose to satisfy HMRC.
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.
🧾 Did you know? Over £800 million in mileage tax relief goes unclaimed in the UK every year. Millions of workers miss out simply because they do not realise they can claim the difference from HMRC if their employer pays less than the official approved rate (such as 30p per mile instead of 55p).
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:
55p 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.
💡 RIFT Recommends: Track the 10,000-mile threshold closely - HMRC's approved rate for cars and vans drops from 55p to 25p per mile once you pass 10,000 business miles in a single tax year. Track your cumulative mileage per tax year (not per job) so you use the correct rate when calculating your relief shortfall.
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
💡 RIFT Recommends: Log passenger miles for extra relief - carrying a work colleague on a business journey allows an additional 5p per mile per passenger tax-free under HMRC rules. Make sure to note passenger names in your mileage logbook - it adds up quickly over a year of site visits or client travel.
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: 55p per mile
Employer mileage paid: 30p per mile
HMRC allowance
6,000 × 55p = £3,300
Employer payment:
6,000 × 30p = £1,800
Difference:
£1200
Chris can claim tax relief on the £1200 shortfall. The amount refunded depends on his tax rate, but this still represents a meaningful return for travel he have already paid for.
HMRC approved mileage rates vs employer shortfalls
Vehicle Type | HMRC Rate (First 10,000 miles) | HMRC Rate (Over 10,000 miles) | Example Employer Rate | Unclaimed Relief Gap |
|---|---|---|---|---|
Car or Van | 55p per mile | 25p per mile | 30p per mile | 25p tax relief per mile (first 10,000) |
Motorcycle | 24p per mile | 24p per mile | 15p per mile | 9p tax relief per mile |
Bicycle | 20p per mile | 20p per mile | 0p per mile | 20p tax relief per mile |
Passenger Top-Up (Carrying a Colleague) | +5p per passenger/mile | +5p per passenger/mile | 0p per mile | +5p tax-free allowance per mile |
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.
"One of the most common myths is that you need a stack of petrol receipts to claim mileage relief. In reality, HMRC cares about your journey log—dates, postcodes, and business reasons—not fuel receipts. If you drove for work and your employer paid under the approved rate, that shortfall is money you're legally allowed to reclaim." - Jan Post, RIFT Founder
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.
