Using Your Vehicle For Business Purposes | Advice

- 2 mins read

As a general rule, if you use your private transport for trips related to your employment, you may be able to claim tax relief if you are not reimbursed for this business use by your employers.

Exceptionally, any normal travel between your home and your place of work will always be excluded from this calculation unless you are required to travel to a temporary place of work.

How much you can claim depends on whether you’re using:

  • a vehicle that you’ve bought or leased with your own money
  • a vehicle owned or leased by your employer (a company vehicle)

Using Your Own Vehicle For Work

If you use your own vehicle or vehicles for work, you may be able to claim tax relief based on an approved, HMRC mileage rate. This covers the cost of owning and running your vehicle. You cannot claim separately for things like:

  • fuel
  • electricity
  • road tax
  • MOTs
  • repairs

To work out how much you can claim for each tax year you will need to:

  • keep records of the dates and mileage or your work journeys
  • add up the mileage for each vehicle type you’ve used for work
  • take away any amount your employer pays you towards your costs, (sometimes called a ‘mileage allowance’)

Approved Mileage Rates

Vehicle type First 10,000 business miles in the tax year Each business mile over 10,000 in the tax year
Cars and vans 45p 25p
Motorcycles 24p 24p
Bicycles 20p 20p

If your employer pays less than the above rates, you can claim tax relief on the difference.

If your employer pays more than the above rates per mile, you will be taxed on any excess as a benefit-in-kind.

Wish To Claim Tax Relief?

Our team of experts can handle the process with forward-thinking solutions in ensuring you get back what your entitled to. Contact us today. 

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