If you use your personal vehicle for work-related travel, you might be entitled to claim mileage expenses from your employer or as a tax rebate through HMRC. But while the rates themselves haven’t changed in years, the rules around who can claim and how to do it can be confusing.
So, let’s clear the confusion. In this guide, we’ll explain the HMRC mileage rates for the 2024/25 tax year—from what mileage allowance is and how the rates are worked out, to what these mean for employees, employers, and the self-employed. You can also contact our team of tax experts to answer any questions you may have about HMRC mileage rates 2024/25.
What Is Mileage Allowance?
Mileage allowance is the approved amount you can claim for using your personal vehicle for business purposes. It’s designed to cover fuel, wear and tear, servicing, and other running costs. Think of it as HMRC’s way of recognising the costs you incur when using your own vehicle for work. The allowance is tax-free if you claim no more than the approved rates.
What are the HMRC Mileage Rates 2024/25?
For the tax year 6 April 2024 to 5 April 2025, HMRC’s Approved Mileage Allowance Payments (AMAPs) are as follows:
Cars and Vans:
- • 45p per mile for the first 10,000 miles in a tax year
- • 25p per mile for each mile over 10,000
Motorcycles:
- • 24p per mile regardless of total mileage
Bicycles:
- • 20p per mile (yes, pedal power counts too!) The rates for electric bikes are the same as the bike rates if it’s an electrically assisted pedal bike.
These mileage rates have remained unchanged for several years, despite growing calls for a review in light of rising fuel costs. But for now, they remain the official figures set by HMRC.
How Does HMRC Calculate Mileage Rates?
HMRC mileage rates are intended to offer a straightforward way to reimburse the costs of using a personal vehicle for work. While the rules can appear complex, the rates themselves aim to provide a standardised way to cover the overall cost of business travel, including:
- • Fuel
- • Maintenance
- • Insurance
- • Road tax
- • Depreciation
Rather than requiring taxpayers to track every individual fuel cost or vehicle expense, HMRC provides a flat-rate mileage system. As long as you claim within the approved rates, there’s no need to retain fuel receipts—simply record your business mileage. If your employer reimburses you at a rate below HMRC’s approved amount, you may be eligible to claim the difference as a tax rebate. And Swift Refunds specialises in helping you reclaim that difference.
Who Can Claim Mileage Allowance?
The mileage rules set by HMRC differ depending on your employment status (and the kind of vehicle or transport you use for business travel). We break this down below:
Employees (PAYE)
If you’re employed and use your own vehicle for work, you can claim Mileage Allowance Relief (MAR) on the difference between what your employer pays you and the HMRC-approved rate.
- • If your employer pays less than 45p per mile (cars), you can claim the difference as tax relief, but if they pay exactly 45p, there will be nothing to claim
- • If your employer pays more than 45p, the extra is taxable.
It’s important to note that ordinary commuting, such as travel between your home and your usual place of work—doesn’t qualify for mileage relief under HMRC’s rules. However, travel to temporary workplaces, offsite meetings, training days, and site visits generally does, provided the journey is necessary for your job and not part of your regular commute.
Self-Employed
If you’re self-employed, you can either:
- • Use the simplified expenses method (i.e, claim the standard mileage rates); or
- • Track actual vehicle running costs and claim a proportion as a business expense.
Most sole traders prefer the mileage method for simplicity. But for those driving long distances for work in a cost-effective vehicle, the actual cost method could offer greater tax relief.
Employers
Employers can reimburse employees for business mileage up to the HMRC-approved rates tax-free. These Mileage Allowance Payments (MAPs) cover the use of an employee’s own vehicle for business journeys, up to an ‘approved amount’ each year without needing to report it.
This setup benefits both employers and employees, without triggering additional tax:
- • Employees are fairly reimbursed by their employer
- • Employers avoid National Insurance on payments within the approved rates.
Just make sure accurate mileage records are maintained to support any claims.
How is Mileage Allowance Claimed?
Employees
- • Log all eligible business journeys with date, destination, purpose, and miles travelled
- • Submit claims to your employer (if they reimburse for business travel)
- • If not, or if they pay below the HMRC rate, claim tax relief via a P87 form.
If you have already completed a self-assessment tax return, you don’t need to use Form P87—you can simply include your mileage claim as part of your annual return.
Self-Employed
- • Keep detailed records of all business trips (date, mileage, purpose)
- • Use total mileage when completing your self-assessment tax return
- • Choose either the mileage method or the actual cost method — but not both.
Employers
- • No need to report if paying HMRC’s approved mileage rate
- • Report and tax anything above the approved amount using Form P11D
- • If paying less, employees can claim Mileage Allowance Relief.
How Swift Refunds Can Help With Tax Relief Claims
Claiming tax relief, particularly for work-related expenses, isn’t always straightforward. Swift Refunds simplifies the process and ensures you receive what you’re entitled to. We help thousands of UK workers—including PAYE employees, mobile workers, and self-employed professionals—claim back overpaid tax on mileage and other qualifying expenses.
- • We can check your eligibility in minutes
- • There are no complicated forms
- • We offer the Swift 100% guarantee: if HMRC ever disputes your claim (and you’ve provided accurate information), we’ll cover the cost.
Are HMRC Mileage Rates 2024/25 Worth Claiming?
While individual mileage claims might seem modest, they can add up significantly over time, turning routine journeys into meaningful tax relief. Whether you’re a solo contractor, a site-hopping employee, or a business owner reimbursing staff, understanding your mileage allowance rights can make a real financial difference. And with our expertise, you’ll have the confidence you’re claiming every mile you’re entitled to, with support at every step.
Need help with business travel expenses? Simply get in touch with our expert team. We will help to ensure that you’re claiming correctly and in line with HMRC mileage rates 2024/25.
