If you use your own personal car for business travel then you can claim mileage expenses back from your business at the rates set by the HMRC.
The mileage rates allowable in the UK are set by HM Revenue and Customs (HMRC). For the 2023 tax year, the rates are:
- 45p per mile for the first 10,000 miles
- 25p per mile for any miles over 10,000 miles
These rates can be used to claim tax relief on the cost of business mileage.
To claim tax relief, you must;
- keep a record of your mileage, including the date, start and end location, and
- the purpose of the journey.
You can claim tax relief using the self-assessment tax return.
It is important to note that these are the rates for business mileage. If you are using your car for private journeys, you will not be able to claim tax relief.
Here are some examples of how the mileage rates can be used to claim tax relief:
If you travel 10,000 miles for business purposes in the year, you can claim £4,500 in tax relief.
If you travel 15,000 miles for business purposes in the year, you can claim £6,750 in tax relief.
It is important to note that these are just examples, and the actual amount of tax relief you can claim will depend on your individual circumstances.