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Claim Mileage Allowance Relief: HMRC Business Mileage Rates

Published by UK Property Accountants
Published Date: February 21, 2023

The HM Revenue and Customs (HMRC) in the United Kingdom has set specific mileage allowance rates for individuals who use their own vehicles for business-related travel.

Self-employed individuals who use their own vehicle for business purposes can claim a mileage allowance for the business miles they drive during the tax year.

What is the HMRC Business Mileage Rates for the Tax Year 2022/23

The approved business mileage rates for the tax year 2022-2023 are as follows:

Vehicles

Flat Rate Per Mile

Cars and Vans( First 10,000 miles)

45p

Cars and Vans( After 10,000 miles)

25p

Motorcycles

24p

Bicycles

20p

Note : These Business Mileage Rates for the year 2022/23 are also applicable in the case of electric vehicles.

Calculate Your Mileage Allowance Relief Accurately

UKPA's Mileage Allowance Calculator

Our mileage calculator makes it easy to calculate your mileage allowance relief for business purposes and claim vehicle expenses.

Whether you're a freelancer, self-employed, or a small business owner in the UK, our calculator takes the hassle out of calculating your mileage tax and allowances. 

Want to Know How Much You Save?

        Take the Guess Work Out

Not to mention, with accurate results and user-friendly features, you can stay on top of your finances and save money.

Try our mileage allowance calculator today and see how much you can claim back!

How is the Mileage Allowance Relief Calculated?

Mileage claims are calculated by multiplying your business-related mileage throughout the tax year with the applicable HMRC mileage rate.

For example, 

You have driven 12,000 business miles over the tax year using your own car.

10,000 * 45p = £4,500

2,000 * 25p = £500

Total you can claim = £5,000

What Records are to be Kept for Mileage Allowance Relief?

In order to claim mileage allowance, individuals must keep accurate records of all business-related travel, including the following:

  • Date of travel
  • The start and end address of each trip, including postcodes
  • Number of miles traveled
  • The purpose of the journey.

These records will be needed if the individual is ever audited by the HMRC.

How to Claim Mileage Allowance Relief?

Once you have calculated your mileage expenses and have all the necessary documentation, you can claim the mileage allowance through a Self-Assessment tax return.

By filling out the tax return and including the mileage allowance as a claim, you will be able to deduct that expense from your taxable income and potentially lower the amount of tax you owe.

Have questions on Mileage Allowance?

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