How does the Mileage Allowance work?
The Mileage Allowance is a simple tax-free allowance that you can claim for using your own car for business.
When should I claim the Mileage Allowance?
- if you use your own (existing) car for business, absolutely yes
- but if you bought your car specifically to be a driver (for example, to drive for Uber), then probably not. You might want to claim the actual (and higher) cost of your car instead: lease payments, depreciation, etc.
Basically it makes sense to use it if:
- you’re self-employed
- driving for work
- and did not buy your car specifically for work.
How do I claim it?
You simply claim it when you do your Self Assessment tax return – at TaxScouts we can do it for you easily and 100% online.
How much can I get?
|Vehicle||Flat rate per mile|
|Cars and vans first 10,000 miles||45p per mile|
|Cars and vans after 10,000 miles||25p per mile|
|Motorcycles||24p per mile|