Last updated: 18 October 2026
Can you claim extra tax relief if your employer pays less than 55p a mile?
Yes. If you use your own car for work journeys and your employer pays less than HMRC’s approved mileage rate, you can claim tax relief on the difference. For cars and vans, the rate for 2026/27 is 55p a mile for the first 10,000 business miles in the tax year (45p in earlier years) and 25p a mile after that. The 10,000-mile limit applies to each employment separately, so if you change jobs during the year, each job gets its own 10,000 miles at 55p.
Approved mileage rates for 2026/27
| Vehicle | First 10,000 miles | Over 10,000 miles |
| Cars and vans | 55p | 25p |
| Motorcycles | 24p | 24p |
| Bicycles | 20p | 20p |
| Passengers (per passenger) | Up to 5p | Up to 5p |
How the relief works
- Work out business miles for the year in each job
- Multiply by the approved rates to get the approved amount
- Subtract what your employer paid
- You get tax relief on the shortfall at your highest tax rate
If your employer pays more than the approved rate, the excess is taxable.
Example: two jobs in one year
Imran worked for Company A until July 2026 and drove 4,400 business miles. He then joined Company B and drove 8,080 business miles by 5 April 2027. Both paid 30p a mile.
- Company A: 4,400 × 55p = £2,420 approved; paid £1,320; shortfall £1,100
- Company B: 8,080 × 55p = £4,444 approved; paid £2,424; shortfall £2,020
- Total shortfall: £3,120. As a basic-rate taxpayer, Imran gets £624 back.
Because each employment has its own 10,000 miles, none of his miles are at 25p.
What counts as business travel
- Journeys to visit clients or temporary workplaces
- Travel between sites during the working day
- Not ordinary commuting between home and your permanent workplace
How to claim
- Expenses up to £2,500: claim online through your personal tax account or form P87
- Over £2,500, or if you already file Self Assessment: claim in your tax return
- You can backdate claims for the previous 4 tax years
Records to keep
Keep a mileage log with dates, destinations, reasons and miles for each trip, plus your employer’s payslips showing mileage payments.
Associated employers
If two employers are associated, for example companies in the same group, HMRC treats them as one employment for the 10,000-mile limit. Miles for both are added together, and anything above 10,000 is at 25p.
Common mistakes
- Claiming ordinary commuting as business mileage
- Forgetting to deduct what your employer has already paid
- Applying a single 10,000-mile limit across two unconnected jobs, and missing out on 55p miles
- Not keeping a log, which makes it hard to support a claim if HMRC asks
Passengers
If a colleague travels with you on business, your employer can pay up to 5p a mile per passenger tax-free. You cannot claim relief if the employer pays less or nothing.
Frequently asked questions
Can I claim fuel receipts instead?
No, employees must use mileage rates.
What if my employer pays nothing?
You can claim relief on the full approved amount.
Do electric cars use the same rates?
Yes, 55p and 25p apply to all cars in 2026/27.
Can I claim for two jobs at the same time?
Yes, each employment has its own limit.
Related: car fuel and mileage allowances, excess mileage payments and claiming employment expenses.
Talk to Accotax
Want this handled for you? Our team at Accotax can help with mileage claims and tax refunds. See our tax refund accountants service, or contact us for a free, no-obligation quote.
This page is general guidance based on HMRC rules for the 2026/27 tax year, checked against gov.uk on 18 October 2026. It is not personal advice, so speak to an accountant about your own situation.
