What is the Mileage Allowance Relief for Employees?

Marin Perez
Woman with glasses driving a car

If you're an employee and use a personal car for business, you may be entitled to tax relief. Let's go over the mileage allowance relief for employees and how to claim it.

What is mileage allowance relief?

The HMRC knows there's a cost to using your personal vehicle for work reasons. That's why it may let you claim some tax relief for the miles you put on your car. This is true whether you have a car allowance or mileage allowance.

Download MileIQ to start tracking your drives

Automatic, accurate mileage reports.

How to use these rates for mileage allowance relief

If you use your own vehicle and don't receive a mileage allowance, track your business miles for the year and then multiply it by the rates above. So, if you drove 9,000 miles, your tax relief would be £4,050.If your employer pays a mileage allowance less than the rates, claim the Mileage Allowance Relief on the difference. If your company gives you more than the standard rates, you'll pay a tax on the difference.

You must keep a record of your drives

The HMRC is very clear about this. It states: "You must keep records of the dates and mileage of your work journeys." An app like MileIQ should help automate this process.