How much can I claim per mile?

HM Revenue and Customs sets the mileage rate for claiming business use of a personal vehicle on a tax return.

The current rate for 2021-2022 is 45 pence per mile for the first 10,000 miles and 25 pence per mile for any additional miles.

The rate applies to cars and vans and covers costs such as fuel, maintenance, insurance, etc.

The expense can only be claimed for business use of the vehicle and a log of mileage must be kept.

Receipts and records of other vehicle expenses such as repairs, insurance, and parking fees can also be claimed.

Zero-emission vehicles may qualify for a higher rate of 4 pence per mile more than the standard rate.

It’s recommended to consult an accountant or tax professional for guidance on claiming vehicle expenses.

What else can I claim?

In addition to the mileage rate, you can also claim other expenses related to your vehicle such as repairs, insurance, and parking fees. You’ll need to keep receipts and records of these expenses to support your claims.

It’s important to note that the mileage allowance is only available for individuals who are self-employed or who receive a taxable allowance from their employer for business travel. If you have any questions about the mileage allowance or claiming expenses on your tax return, it’s always best to consult with an accountant or a tax professional for guidance.

How do I know if I am eligible to claim mileage?

If you use your own car for business use, then you can claim mileage.

You cannot claim the fuel for the commute from home to work if you are on PAYE. (In some cases, you may be able too, but it’s worth checking with an accountant before lodging a claim)

It makes a lot of sense to claim your mileage if you are self-employed and driving a lot for work purposes.