Drivers urged to get £75 from HMRC tax-free with pay per mile rule
Reach Daily Express February 28, 2026 07:41 PM

Drivers are being urged to get up to £75 from HMRC with tax-free allowances paid per mile.

Financial experts have pointed to the rules on mileage allowance relief that drivers my be able to use to reduce some of the tax they owe.

Currently, drivers who use their personal car for business travel are entitled to be reimbursed by 45p per mile for the first 10,000 miles, or 24p per mile for a motorbike and 20p for bicycles. After the first 10,000 miles, the car rate drops to 25p but the other two remain the same.

In addition, you can also claim an extra 5p per mile per passenger.

According to Protecting.co.uk, while costs can often be claimed through your employer, not all employers pay the full rate. If your workplace pays less than these rates, you're entitled to claim the difference from HMRC.

It says: "Where employees use their personal vehicle for business travel, they are entitled to be reimbursed 45p per mile (for a car) for the first 10,000 miles, 24p for motorcycles, and 20p for bicycles. Beyond this, the rate changes to 25p per mile.

"Sometimes, employers may pay them less than this, so workers are entitled to claim tax relief on the difference.

"Employees can make a claim by providing HMRC with a mileage log, complete with the reason for the journey, and start and end postcodes."

It says that someone who drove 500 miles with an underpayment of 15p per mile would be entitled to £75 back from HMRC in tax allowances.

This is backed up by accountancy firm Anna Money. In its guidance it says: "Mileage Allowance Payments (MAPs) are the payments that employers make to reimburse employees travelling for work. These can be lump sums, fixed rates per mile or reimbursement for actual expenditure.

"MAPs up to a certain threshold are not taxed, these are known as AMAPs, Approved Mileage Allowance Payments. Payments that exceed these thresholds may be subject to tax."

It adds: "If you are an employee and your employer reimburses less than the HMRC-approved mileage rate, you can claim tax relief on the difference. This ensures you aren't penalised for receiving less than the standard allowance.

"The process involves submitting a claim through your self assessment tax return or, in some cases, by using HMRC's P87 form."

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