5. Business mileage and fuel costs

You may be able to claim tax relief if you use your own vehicle on business or for fuel you buy when you use a company car.

You can’t claim for travelling to where you work, unless it’s a temporary place of work.

Using your own vehicle

If you use your own vehicle for business, you may be able to claim ‘Mileage Allowance Relief’.

To work out how much tax relief you can claim, add up your business mileage for the tax year and multiply it by the approved mileage rates.

If your employer doesn’t pay you a mileage allowance you can claim the full approved amount of Mileage Allowance Relief.

If your employer pays you a mileage allowance but it is less than the approved amount, you can claim Mileage Allowance Relief on the difference.

If your employer pays you more than the approved amount you’ll have to pay tax on the difference.

You must keep records of the dates and mileage of your work journeys.

Using multiple vehicles

If you use more than one vehicle of the same type combine your business miles for them together. If you use different types of vehicles calculate them separately.

Using a company car

You can claim tax relief on fuel you have paid for when using a company car for business. If your employer has repaid you for some of the cost you can claim relief on the difference.