Using your own car for work
Qualifying business mileage in an employee’s own car falls under Approved Mileage Allowance Payments (AMAPs). In the 2026/27 UK tax year, cars and vans have a 55p first-10,000-business-mile rate followed by 25p for additional business miles. Before 6 April 2026, the initial rate was 45p. Motorcycles and bicycles have separate rates. If your employer pays below the approved amount, you may qualify for relief on the shortfall, but the shortfall is not a cash refund.
Driving a company car
Employees in a company car generally use the separate advisory fuel rates for fuel reimbursement on work journeys and repaying private fuel. These rates depend on fuel, engine size and, for fully electric company cars, home or public charging. From 1 September 2026 the advisory electric rates are 7p and 15p per mile respectively. Do not plug company-car miles into the 55p/25p own-car calculation.
Ordinary commuting is different
Travel between home and a permanent workplace normally counts as ordinary commuting, not qualifying business mileage. Journeys to temporary workplaces may be different. Keep accurate journey records and check the actual HMRC definitions if work sites vary.
Worked example
An employee covers 12,000 qualifying business miles using their own car in 2026/27. The approved amount is 10,000 × £0.55 plus 2,000 × £0.25, giving £6,000. If the employer has paid £4,000, the potential relief basis is £2,000, not a £2,000 tax refund. A company car would instead be calculated using advisory rates for its fuel or electricity.
What about self-employment?
Eligible self-employed people may use HMRC simplified mileage expenses instead of actual vehicle expenses, subject to vehicle type and method restrictions. This is a business expense deduction, not a reimbursement. Claiming the same costs twice is not allowed. Company-car rules, employer reimbursements and self-employed simplified expenses are not interchangeable. When working for more than one employer, separate 10,000-mile bands may apply to unrelated employments, but business miles for associated employments are combined.
Questions people ask
What if I use my personal car for two employers?
Unrelated employments normally have a separate 10,000-mile band each. Associated employments, such as jobs with the same employer or connected companies, share one band. Keep separate journey records.
Are HMRC rates updated every April?
Approved own-car rates and company-car advisory rates can change on different schedules. Always verify the applicable date before processing a claim.
Check the official source
For current definitions and values, check the primary UK reference. Rules, rates and data sources can change after this guide was published.