Claiming Mileage Relief in the UK for 2025/26: A Comprehensive Guide

If you’re using your personal or company car for business purposes, you may be eligible to claim mileage relief and reduce your tax bill. At Khoob Accountancy, a trusted team of ACCOUNTANCY in London, we specialise in helping employees and business owners navigate tax-efficient travel claims, payroll, and virtual accounting services.

What is Mileage Relief?

Mileage relief allows employees and business owners to claim tax relief for the cost of using a vehicle for business journeys. If your employer reimburses less than the HMRC-approved mileage rates, you can claim the difference. This relief applies whether you use your own car, a van, a motorbike, or even a bicycle.

Who Can Claim Mileage Relief?

• Employees using their own car or vehicle for business travel
• Company car drivers covering business fuel themselves
• Employees receiving mileage payments below HMRC rates

Our team of accountants in Kensington and Barnet accountants can guide you through the process to ensure your claims are accurate and compliant.

HMRC Approved Mileage Rates

Vehicle Type	Rate per Mile
Cars and Vans (up to 10,000 miles)	45p
Cars and Vans (after 10,000 miles)	25p
Motorcycles	24p
Bicycles	20p

Example Scenario

Wendy drives 2,100 miles in a tax year for work. Her employer reimburses her 30p per mile.

• Approved amount: 2,100 x 45p = £945
• Reimbursement received: 2,100 x 30p = £630
• Tax relief claimable: £315

Speak to our personal accounting consultancy UK team to file your claim correctly and avoid missed deductions.

Company Car Users

If you’re using a company car and paying for business fuel, you can still claim tax relief on those expenses. However, you must track your actual fuel or electricity cost and business mileage. HMRC’s standard mileage rates do not apply here.

Recordkeeping is Crucial

To make a successful claim, keep a mileage log that includes:

• Start and end postcodes for every trip
• Date and reason for each journey
• Total miles travelled per trip

Need help with logs? Our bookkeepers in England can set up your tracking system with ease.

How to Make a Claim

You can claim mileage relief through:

• HMRC’s online tool
• Your Self Assessment tax return
• Form P87 (for postal claims)

Whether you run a small business or are a full-time employee, our virtual office accounting service ensures your claims are filed properly.

Common Mistakes to Avoid

• Not keeping mileage logs
• Claiming for personal trips
• Using incorrect rates
• Not deducting employer reimbursements

The accounting and bookkeeping experts at Khoob Accountancy make sure these errors don’t cost you.

Why Choose Khoob Accountancy?

Whether you need a french speaking accountant or a team of French chartered accountants to help manage your business accounts, we’re here to help.

• Trusted accountants in Barnet and accountants Kensington
• Experts in employment tax and payroll services
• Support for national insurance contribution accounting
• Reliable tax support for London businesses

Get Expert Help Today

Want to know how to choose an accountant or how to find an accountant for your business? Khoob Accountancy offers expert guidance, including virtual accounting office services and payroll services in Peterborough. Contact us today to ensure your mileage claims and other accounting needs are handled accurately and efficiently.