Questions and Answers
Claiming business mileage on a private car
I am employed but have to use my own car for business journeys, what can I claim?
If you are an employee but have to use your own vehicle for business journeys then you can claim mileage.
If the employer pays you for the business miles you do they can pay you up to the HMRC approved rates below – known as Approved Mileage Allowance Payment (AMAP) without incurring any tax and NIC.
If they reimburse you more than the approved rate the additional amount will be subject to tax and NI.
If they don’t reimburse you at the approved rates or not at all then you can claim tax relief on the difference.
| First 10,000 business miles in tax year | Each business mile over 10,000 in tax year | |
|---|---|---|
| Cars and vans | 45p | 25p |
| Motorcycles | 24p | 24p |
| Bicycles | 20p | 20p |
If you would like any further advice in this area please contact us on 01463 242 667 or use our simple online contact form to arrange a free initial consultation.
Date published 21 Jul 2021 | Last updated 21 Jul 2021
This article is intended to inform rather than advise and is based on legislation and practice at the time. Taxpayer’s circumstances do vary and if you feel that the information provided is beneficial it is important that you contact us before implementation. If you take, or do not take action as a result of reading this article, before receiving our written endorsement, we will accept no responsibility for any financial loss incurred.Choose the right accounting firm for you
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