Business mileage tax relief for employees
Tax relief may be available when you use your own vehicle for qualifying work journeys and your employer pays less than the approved amount. It is relief on a deduction, rather than repayment of your motoring costs.
Which journeys count?
Check the business-journey rules, including temporary workplaces. Your ordinary commute to a permanent workplace usually does not count.
Which mileage rate applies?
Cars and vans use 55p for the first 10,000 business miles in 2026/27 and 25p thereafter. Before 6 April 2026, the first-band rate was 45p. Match the rate to the tax year.
What records should I gather?
Keep dated journey logs and employer payment records. Subtract payments from the approved amount before assessing any tax relief.
Where do I claim?
If you already file Self Assessment, use your return. Otherwise use HMRC’s job-expenses service. The £2,500 routing threshold concerns allowable expenses, not the cash refund.
Work out the approved mileage amount →
Before you claim
Keep records, subtract reimbursements and check what you have already claimed. Entitlement depends on your circumstances in each tax year. You can use HMRC’s services yourself without buying a report.