What is PAYE mileage tax relief?
If you are employed and use your own car, van, motorcycle or bicycle for qualifying work journeys, you may be able to claim Mileage Allowance Relief where your employer pays you less than HMRC's approved mileage amount.
PAYE mileage tax relief is based on qualifying business mileage in your own vehicle, compared with qualifying mileage payments already received from your employer. The relief reduces the amount of income on which you pay tax — it does not mean HMRC refunds the full mileage amount.
HMRC approved mileage rates for 2026/27
HMRC's approved mileage rates are used when calculating the approved amount for business mileage in an employee's own vehicle.
| Vehicle | 2026/27 approved rate |
|---|---|
| Car or van — first 10,000 business miles | 55p per mile |
| Car or van — each business mile over 10,000 | 25p per mile |
| Motorcycle | 24p per mile |
| Bicycle | 20p per mile |
Before 6 April 2026, the approved car and van rate for the first 10,000 business miles was 45p per mile.
Which journeys can qualify for mileage tax relief?
The important distinction is between qualifying business travel and ordinary commuting.
Depending on your circumstances, qualifying journeys can include:
- Travel between workplaces during the working day.
- Journeys to customers, clients, patients or other locations required as part of your employment duties.
- Travel to a qualifying temporary workplace.
- Other journeys that you have to make in the performance of your employment duties.
Can I claim mileage from home to work?
In most cases, no. Travel between your home and your permanent workplace is normally treated as ordinary commuting rather than qualifying business travel.
Travelling a long distance, carrying work equipment or using your own vehicle does not by itself make an ordinary commute eligible for mileage tax relief.
What about travel to a temporary workplace?
Travel to a qualifying temporary workplace can potentially be treated differently from ordinary commuting.
HMRC has detailed rules for determining when a workplace is temporary, including rules concerning the expected length and pattern of attendance.
We cover this separately in our Temporary Workplace Rules Guide .
What if my employer already pays mileage?
Receiving mileage payments from your employer does not automatically mean there is no additional tax relief available.
If your employer pays less than HMRC's approved amount for qualifying business mileage, Mileage Allowance Relief may be available on the unused balance.
If your employer has already paid the full approved amount for those miles, there would generally be no additional Mileage Allowance Relief available on the same mileage.
Example: employer pays less than the approved mileage rate
4,000 qualifying business miles
An employee drives 4,000 qualifying business miles using their own car during the 2026/27 tax year.
Using HMRC's approved rate of 55p per mile, the approved amount would be:
4,000 × £0.55 = £2,200
If the employer reimburses the employee at 30p per mile, the employee receives:
4,000 × £0.30 = £1,200
The unused approved amount would therefore be:
£2,200 − £1,200 = £1,000
Subject to the employee's circumstances, Mileage Allowance Relief may potentially be available on that £1,000 difference.
This does not mean the employee receives £1,000 from HMRC. The actual tax benefit depends on the Income Tax relief available to that individual.
What mileage records should you keep?
HMRC requires mileage records when making an employment mileage claim.
Your mileage records should contain enough information to show which journeys relate to qualifying employment travel.
HMRC currently requires mileage logs to include the reason for every journey and the postcodes for the start and end points. It is also sensible to maintain complete records showing:
- Date of the journey.
- Reason for the journey.
- Starting location or postcode.
- Destination or ending postcode.
- Business mileage travelled.
- Which employment the journey relates to.
- Mileage reimbursements received from your employer.
How do PAYE employees claim mileage tax relief?
Eligible employees can claim employment expense tax relief through HMRC. If you complete a Self Assessment tax return, HMRC says you should claim through your tax return instead.
HMRC currently allows eligible vehicle expense claims for the current tax year and the four previous tax years.
Only include qualifying business journeys in your mileage calculation. Ordinary commuting between home and a permanent workplace should not normally be included.
Reviewed & Updated
11 June 2026
2026/27
GO TAX REFUNDS
HM Revenue & Customs / GOV.UK
Tax rules and HMRC guidance can change. This guide provides general information and should be considered alongside your individual employment and tax circumstances.
PAYE Mileage Tax Relief FAQs
Answers to some of the most common questions employees have about claiming tax relief on work mileage.
Can I claim mileage from home to work?
Usually not. Travel between your home and a permanent workplace is normally ordinary commuting. Travel to a qualifying temporary workplace may be treated differently, depending on the circumstances.
Can I claim if my employer pays me 30p per mile?
Potentially. If your employer pays less than HMRC's approved mileage amount for qualifying business mileage, Mileage Allowance Relief may be available on the unused approved amount.
Can I claim mileage if I use my own car?
Potentially, yes. HMRC's Mileage Allowance Relief rules apply where an employee uses their own qualifying vehicle for business travel and receives less than the approved amount from their employer.
Do I need fuel receipts to claim mileage tax relief?
When you use your own vehicle, the approved mileage rate is intended to cover the costs of owning and running the vehicle. HMRC requires copies of mileage logs for mileage claims rather than a separate claim for fuel, MOT, vehicle tax or repairs.
How far back can I claim PAYE mileage tax relief?
HMRC currently states that eligible employees can claim vehicle expense tax relief for the current tax year and the four previous tax years.
Can I claim parking as well as mileage?
Parking costs connected with qualifying business travel may potentially be considered separately from mileage. HMRC requires evidence such as receipts for qualifying travel costs including parking.
Can I claim mileage to a temporary workplace?
Potentially. HMRC's travel rules can allow relief for travel to a qualifying temporary workplace. Whether a workplace is temporary depends on the nature, purpose and expected duration of your attendance.
HMRC & GOV.UK Sources
We use official HMRC and GOV.UK guidance when reviewing the tax rules discussed on this page.
Not sure whether your work mileage qualifies?
Go Tax Refunds can review your employment, work journeys, employer mileage payments and supporting records to help determine whether you may be eligible for Mileage Allowance Relief.
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