Can You Claim Mileage If You Use Your Own Car for Business?

If you use your own car for business journeys, you may be able to claim mileage allowance. For the 2026–27 tax year, the approved rate for cars and vans is 45p per mile for the first 10,000 business miles, then 25p per mile after that. The rate is intended to cover the vehicle’s running costs, so you cannot also claim separate costs such as fuel, repairs or insurance for the same mileage.

The journey itself must qualify as business travel. Travel between your home and your permanent workplace is normally treated as ordinary commuting and does not qualify. Journeys between workplaces or to a temporary workplace can qualify, depending on the circumstances.

You should keep a mileage record showing the date, destination, reason for the journey and number of business miles. Keep records of any mileage payments you receive from your employer as well. If your employer pays less than the approved mileage rate, you may be able to claim tax relief on the difference.

For example, 4,000 business miles at 45p per mile gives an approved amount of £1,800. If your employer pays you £1,200, the remaining £600 may qualify for tax relief.