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Business Mileage Rates

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Business Mileage Rates
by Admin User - Thursday, 1 August 2019, 4:14 PM

Hi All, 

Just to confirm that business mileage claims for a car have changed to 25p per mile. 

Note that if you are ever doing business miles, you must have business insurance in order to claim back business miles. 

You could then claim for tax relief on top of this, on the difference between 25p x business miles, and 45p x business miles (up to 10000 miles maximum). This can be done via the government website.


The calculation would be (for example):

Business miles travelled in the year: 10,000

Mileage claim value: 25p x 10,000 = £2,500

Govt. value: 45p x 10,000 = £4,500

Tax Relief claim value: £2,000 (Govt. value minus miles claimed)

Amount claimed depends on your tax bracket


This can be done once a year for each tax year. If you don’t do any business mileage, there obviously won’t be a need for a tax relief claim.

Any questions, please just let me know.