Day 18 of Christmas


How many pence a mile when cycling to clients?


Vehicles you use for work

You may be able to claim tax relief if you use cars, vans, motorcycles or bicycles for work.

This does not include travelling to and from your work, unless it’s a temporary place of work.


How much you can claim depends on whether you’re using:

  • a vehicle that you’ve bought or leased with your own money
  • a vehicle owned or leased by your employer (a company vehicle)


Using your own vehicle for work

If you use your own vehicle or vehicles for work, you may be able to claim tax relief on the approved mileage rate.

This covers the cost of owning and running your vehicle. You cannot claim separately for things like:

  • fuel
  • electricity
  • road tax
  • MOTs
  • Repairs


To work out how much you can claim for each tax year you’ll need to:

  • keep records of the dates and mileage of your work journeys
  • add up the mileage for each vehicle type you’ve used for work
  • take away any amount your employer pays you towards your costs, (sometimes called a ‘mileage allowance’)


Approved mileage rates

First 10,000 business miles in the tax year

Cars and vans    45p

Motorcycles 24p

Bicycles 20p


Each business mile over 10,000 in the tax year

Cars and vans 25p

Motorcycles 24p

Bicycles 20p


Using a company car for business

You can claim tax relief on the money you’ve spent on fuel and electricity, for business trips in your company car. Keep records to show the actual cost of the fuel.

If your employer reimburses some of the money, you can claim relief on the difference.

It does not matter if your employee uses more than one vehicle in a year – it’s all calculated together.


What to report and pay

Anything above the ‘approved amount’

You must:

  • Report on form P11D
  • Add anything above the ‘approved amount’ to the employee’s pay, and deduct and pay tax as normal


Anything below the ‘approved amount’

You will not have to report to HMRC or pay tax, but:

  • Your employee will be able to get tax relief (called Mileage Allowance Relief, or MAR) on the unused balance of the approved amount
  • You can make separate optional reports to HMRC of any such unused balances under a scheme called the Mileage Allowance Relief Optional Reporting Scheme (MARORS) – contact HMRC to join the scheme

Passenger payments

If your employee carries another employee in their own car or van on a business journey, you can pay them passenger payments of up to 5p per mile tax-free.

You will not have to report this to HM Revenue and Customs (HMRC) or deduct and pay National Insurance on them either.

For company cars different rules apply


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