Mileage guide
UK employee mileage claims: build the employer and tax-relief records
By FlatMile ·
General UK employee mileage information. Employer reimbursement and HMRC tax relief are separate processes.
At a glance
A UK employee mileage claim should show each work journey and what the employer has already paid. Keep the employer reimbursement request separate from any HMRC tax-relief calculation: an unpaid allowance amount is not automatically the cash refund you receive.
This checklist concerns an employee's own vehicle. Company-car fuel claims and sole-trader vehicle expenses need different treatment. Use the self-employed records guide if you operate as a sole trader.
Start with the employer's claim rules
Ask for the current expense policy and identify the claim deadline, vehicle category, permitted journeys, approval contact and required evidence. Keep the policy version with your first claim. An approved tax amount does not by itself tell you what your employment contract pays.
A practical claim packet includes:
- Employee name, employment reference and reporting dates.
- Vehicle identification and distance unit.
- Journey date, start and end locations, miles and reason.
- Claim reference, submission date and supporting appointment evidence.
- Amount requested, amount approved and amount actually paid.
Retain rejected and corrected claims so you can explain differences later. A bank deposit alone may combine mileage with meals or other expenses; keep the employer's itemised statement.
Use the correct year and vehicle table
HMRC's employee guidance lists 55p for the first 10,000 car or goods-vehicle business miles in 2026–27 and 25p thereafter. The first-band rate before 6 April 2026 was 45p. The tax year starts on 6 April, so separate earlier trips before applying rates.
HMRC's relief calculation deducts employer mileage payments from the approved amount. Normal commuting is generally outside this relief; temporary-workplace rules can affect the answer. Record the facts of the workplace arrangement rather than assuming a different customer address always qualifies.
Reconcile a fictional monthly claim
Assume an employee has 400 qualifying car miles, remains within the first annual band and the employer pays a fictional 35p per mile. This is a calculation example, not a recommended employer rate.
| Item | Calculation | Amount |
|---|---|---|
| Employer payment | 400 × £0.35 | £140 |
| Approved amount at the stated 2026–27 rate | 400 × £0.55 | £220 |
| Difference for possible tax relief | £220 − £140 | £80 |
The £80 is an expense amount on which relief may be available, subject to eligibility. It is not an £80 refund. If all of that amount reduced income taxed at a fictional 20%, the corresponding income-tax effect would be £16; individual circumstances can differ. Do not label the claim worksheet's difference column “refund.”
Keep annual cumulative miles alongside monthly claims. Repeatedly applying the first band to each month would lose the annual threshold. If you have multiple employments, check how the rules apply before combining records.
Prepare the evidence for HMRC
HMRC currently asks for mileage-log copies containing each journey's reason and starting and ending postcodes, with a separate log for each employment claimed. Include these fields at collection time rather than trying to retrieve postcodes months later. Keep exact locations in your controlled records even when a shared summary uses a short site reference.
Before submitting, reconcile mileage to the employer's payments for the same period and check for claims paid after the original reporting date. Follow HMRC's current claim route; people completing Self Assessment claim through their return.
The free reimbursement-form guide offers a general worksheet. Adapt the currency, tax year, postcode fields and employer policy before using it for a UK claim. Its fictional US-dollar example is not a UK allowance schedule.