What is a mileage claim?

A mileage claim allows employees or business owners to be reimbursed for using their personal or company vehicle for work-related travel.

Key Aspects of a Mileage Claim:

• Purpose – Covers fuel, maintenance, and depreciation costs incurred during business trips.
• Mileage rates – In the UK, HMRC sets advisory rates (e.g., 45p per mile for the first 10,000 miles in a personal car).
• Eligible travel – Business trips, client visits, and work-related journeys (not including commuting to a regular workplace).
• Claim process – Employees record miles driven and submit claims with supporting documents (logbooks, fuel receipts, or expense reports).
• Tax considerations – Approved mileage payments are tax-free up to HMRC’s rates; anything above may be taxable.

Accurate mileage tracking ensures compliance and fair reimbursement.