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Use your own car for work? You could claim tax back if you're paid under 55p a mile

The Treasury says the 55p tax-free mileage rate is here to stay. If your employer pays less, HMRC will give you tax relief on the gap, and you can go back four years.

Published 28 October 2026Last checked 28 October 2026UK-wideFrom HM Revenue and Customs

A worn car key resting on an open paper mileage logbook on a car passenger seat, with a small pile of coins beside it and soft morning light through the windscreen.

Illustration generated with AI

What's happening

If you drive your own car or van for work and your employer pays you less than 55p a mile, you may be able to claim tax relief on the gap. The Treasury said on 26 October that the 55p rate will be kept and the rate for miles over 10,000 a year will rise from 25p to 35p. You can claim for this tax year and the four before it.

The question: Can I claim tax relief if my employer pays me less than the approved mileage rate, and how much is it worth?

This applies to you if…

  • You are an employee and use your own car, van, motorbike or bicycle for work journeys
  • Your employer pays you less than the approved rate per business mile, or nothing
  • You paid income tax in the year you are claiming for
  • You can show a mileage log with dates, start and end postcodes and the reason for each journey

Not for you if…

  • Your normal commute to your usual workplace
  • People whose employer already pays 55p a mile or more for the first 10,000 miles
  • Company car drivers (different rules apply to fuel)
  • Self-employed people, who use the flat rates in their own business accounts instead

What it's worth

What it's worth: Your rate of income tax applied to the gap between what your employer pays and the approved rate

Approved mileage rates for 2026 to 2027: 55p a mile for the first 10,000 business miles, 25p after that, for cars and vans

Tax year 2026 to 2027 (the car and van rate was 45p before 6 April 2026)

6,000 work miles a year, employer pays 30p a mile

  1. Approved amount: 6,000 miles x 55p = £3,300
  2. Employer pays: 6,000 miles x 30p = £1,800
  3. Gap you can claim relief on: £3,300 - £1,800 = £1,500
  4. Relief at 20% basic rate: £1,500 x 20% = £300

About £300 less tax for the year for a basic-rate taxpayer (£600 at the 40% higher rate)

Illustrative calc using HMRC's approved rates. Your own figure depends on your miles, what your employer pays and your tax rate.

How to do it

  1. 1

    Check your mileage and what you were paid

    Add up your business miles for the tax year (6 April to 5 April) and what your employer paid you towards them. Payslips or expense claims usually show this.

    Takes about 20 minutes

  2. 2

    Work out the gap

    Multiply your miles by the approved rate for that year, then take away what your employer paid. For years before 6 April 2026 the car and van rate is 45p.

    Takes about 10 minutes

  3. 3

    Claim online with HMRC

    Use the GOV.UK service for claiming tax relief on job expenses. You'll need a Government Gateway sign-in. If you fill in a Self Assessment tax return, claim on your return instead.

    Takes about 15 to 30 minutes

  4. 4

    Keep your records

    HMRC can ask for your mileage logs. Keep them with the date, start and end postcodes and the reason for each journey.

Deadline

Last day to claim for the 2022 to 2023 tax year — 5 April 2027 (in 159 days)

You can claim for the current tax year and the four before it. Each 5 April, the oldest year drops out.

The catches

Commuting doesn't count

Travel between home and your usual workplace is not a business journey. A trip to a temporary workplace, or between sites during the day, usually is.

No extra claims for running costs

For your own vehicle, the mileage rate is meant to cover fuel, electricity, tax, MOTs and repairs. You cannot claim those separately on top. Company car drivers have different rules.

You need to have paid tax

The relief can't be more than the tax you paid that year. If you earned below the Personal Allowance, there is nothing to get back.

Mileage over 10,000

Above 10,000 business miles in a tax year, the approved rate for cars and vans is 25p. The Treasury has announced a rise to 35p. MoneySavingExpert reports it is due from 6 April 2027, but no official start date has been published yet.

Illustrative example

Sam, a community nurse

Sam drives 6,000 work miles a year visiting patients in her own car. Her employer pays 30p a mile. She pays basic-rate tax and hasn't claimed before.

  1. 2026 to 2027: gap is 6,000 x (55p - 30p) = £1,500, so relief of about £300
  2. 2025 to 2026: gap is 6,000 x (45p - 30p) = £900, so relief of about £180
  3. She can also go back to 2022 to 2023 using the 45p rate for each of those years

If her miles and pay were similar every year, the earlier years would add about £180 each.

Illustrative only. Sam is a made-up example, and real claims depend on actual mileage logs and tax paid each year.

What this means for…

  • Employed (PAYE): You can claim relief if your employer pays under 55p a mile for work journeys in your own vehicle.
  • Self-employed: The flat rate you can use in your accounts went up to 55p a mile for the first 10,000 business miles from 6 April 2026.
  • Drive an electric car: Electric and hybrid cars get the same approved mileage rate as petrol and diesel cars.

Common misreadings

You might hear: The rise to 55p means my employer has to pay me more.

Actually: Employers don't have to pay the approved rate. It is the most they can pay tax-free, and the level HMRC uses to work out relief on any shortfall.

You might hear: I can only claim for this year.

Actually: You can claim for the current tax year and the four before it, using the rate that applied in each year.

You might hear: Electric cars don't count.

Actually: HMRC's guidance says the approved rates for cars and vans include electric and hybrid vehicles. The 55p rate was 45p before 6 April 2026.

Where the UK nations differ

UK-wide
The approved mileage rates are the same across the UK. Relief is given at the rate you pay income tax, so check your own tax band when working out what you'll get back.

What you could do

  1. drive your own car for work and get less than 55p a mile

    Add up this year's business miles and claim relief on the gap through HMRC's online service

  2. have never claimed and did similar driving in past years

    Claim for earlier years too, starting with 2022 to 2023 before it drops out

    By 2027-04-05

  3. fill in a Self Assessment tax return

    Put your mileage expenses on your return rather than using the separate online claim

Timeline

  1. 6 April 2026

    Car and van rate rises from 45p to 55p

    For the first 10,000 business miles

  2. 26 October 2026

    Treasury says 55p will be kept and the rate over 10,000 miles will rise to 35p

    Announced ahead of the Budget

  3. 5 April 2027

    Last day to claim for 2022 to 2023

The detail

The rules

  • Approved mileage rates 2026 to 2027: cars and vans 55p (first 10,000 business miles) and 25p after; motorcycles 24p; bicycles 20p.
  • Before 6 April 2026 the car and van rate for the first 10,000 miles was 45p.
  • Your employer can also pay up to 5p per passenger per business mile tax-free for carrying colleagues on work journeys. HMRC's manual (EIM31410) says there is no relief if they pay less or nothing.
  • Self-employed people using simplified expenses use the same flat rates for cars, vans and motorcycles, and must keep using them for that vehicle.
  • You can claim within 4 years from the end of the tax year you're claiming for, so 2022 to 2023 can be claimed until 5 April 2027.

References

  • Tax relief for employees: vehicles you use for work: Rates table, commuting rule, records needed and the four-year limit
  • HMRC travel mileage and fuel rates: Approved rates from 2026 to 2027 and for 2011 to 2026

Documents

Words explained

Approved mileage rate
The amount per mile HMRC lets your employer pay you tax-free for work journeys in your own vehicle.
Mileage Allowance Relief
Tax relief you can claim when your employer pays you less than the approved rate.
Business mile
A mile driven for work, such as visiting clients or a temporary site. Your normal commute is not included.
Tax year
The year HMRC uses, running from 6 April to the following 5 April.

In short

If you drive your own car for work and get less than 55p a mile, HMRC will give you tax relief on the difference. You can claim online for this year and the four before it, so check your mileage and claim for 2022 to 2023 before 5 April 2027.

Related dates

  • 28 Oct Autumn Budget 2026Announcement · today
  • 31 Oct Paper Self Assessment return deadline (2025 to 2026)Deadline · in 3 days
  • 7 Nov Making Tax Digital: second quarterly update dueDeadline · in 10 days
  • 30 Dec File Self Assessment online to pay through your tax codeDeadline · in 63 days
  • 31 Jan Online Self Assessment return and payment deadline (2025 to 2026)Deadline · in 95 days
  • 7 Feb Making Tax Digital: third quarterly update dueDeadline · in 102 days
See the money calendar

Sources

  1. Tax relief for employees: vehicles you use for work, GOV.UK (2026-10-28)
  2. Travel: mileage and fuel rates and allowances, HMRC (2026-10-28)
  3. Everyday fixes to make life easier for millions of Britons, HM Treasury (2026-10-26)
  4. Tax relief for employees, GOV.UK (2026-10-28)
  5. Claim tax relief for job expenses by post or phone, GOV.UK (2026-10-28)
  6. Employment Income Manual EIM31240, HMRC (2026-10-28)
  7. Simplified expenses: vehicles, GOV.UK (2026-10-28)
  8. Use your own car or van for work? Mileage rates rise, MoneySavingExpert (2026-10-26)

This is guidance, not regulated financial advice. Check figures against the linked official source before you act. Written with AI assistance and checked against primary sources. How Kitty works. For free, impartial help, try MoneyHelper or Citizens Advice.