The Mileage Allowance is a tax-free allowance for people who use their vehicles for work. You can use it if you drive for business in a car, van, or bike. It doesn’t matter whether you’re self-employed or a full-time employee, you can claim back some of the time you’ve spent on the road for business.
Ultimately, anyone who uses a vehicle for work can claim the mileage allowance. However, if you bought the car solely to use for work, for example to work as an Uber driver, there might be other tax-relief schemes you’ll want to use instead to account for leasing the vehicle or depreciation as a result of driving for work. If this is just your personal car that you also use to drive to meetings for example, you can claim the mileage allowance.
How much you can claim depends on how much you travel for business:
If you’re self-employed and you’re not part of a limited company, then you might want to use simplified expenses instead.
You can claim the allowance through your annual Self Assessment tax return. Remember to file your Self Assessment by 31st January the year after the tax year you’re paying for. For example, if you earned money for your business between 6th April 2023 and 5th April 2024, you’re paying your 2023/2024 tax return. This bill should be paid by 31st January 2025.
No – if the car is used only for work/lives at your office, your employer is responsible for ensuring that there is fuel in it, as well as paying for the insurance. If you buy fuel for the car while you’re using it, your employer should reimburse you, tax-free.
There are two important deadlines for you to remember if you pay your tax via a Self Assessment Tax Return. You must register for Self Assessment by the 5th October following the end of the relevant tax year, and then must submit your Self Assessment in full by the 31st January.