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How does the Mileage Allowance work?

We've updated this guide on 26th October 2021

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?

Depends:

  • 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

Want to calculate what mileage allowance you could claim?

Check out our mileage allowance calculator. It’s easy to use and you can work out what you can claim per vehicle.

Do you own the vehicle you use for work?
Did you buy the vehicle specifically to use for work?
Type of vehicle
How many miles do you drive per year?
If you’re self-employed and use your car for work, you can claim back a flat rate for your usage costs using the Mileage Allowance. If you’re employed, claim the mileage tax relief instead.

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