How to Enter Mileage Allowance Relief on Self-Assessment
- Adil Akhtar
- 2 days ago
- 14 min read
Understanding Mileage Allowance Relief and Its Place in Your Self-Assessment
So, you’re wondering how to claim Mileage Allowance Relief (MAR) on your Self-Assessment tax return? Let’s get straight to the point: MAR is a tax relief for UK taxpayers who use their personal vehicle for work-related travel and aren’t fully reimbursed by their employer at HMRC’s approved rates. For the 2025/26 tax year, if your employer pays you less than 45p per mile for the first 10,000 business miles (or 25p thereafter) for cars or vans, you can claim the difference as tax relief. Self-employed individuals can claim the full mileage allowance as an expense. To enter this on your Self-Assessment, you’ll need to report it in the employment or self-employment sections, depending on your status, and back it up with meticulous records. Now, let’s break this down to make sure you’re set up for success.
What Exactly Is Mileage Allowance Relief?
Now, if you’ve ever driven your own car for work—say, to meet a client or visit a temporary site—you might be eligible for MAR. This relief, set by HM Revenue and Customs (HMRC), compensates for costs like fuel, maintenance, and wear and tear when you use your personal vehicle for business purposes. For employees, MAR kicks in when your employer’s Mileage Allowance Payments (MAPs) fall short of HMRC’s Approved Mileage Allowance Payments (AMAP) rates. Self-employed folks, on the other hand, can claim the full AMAP rate as a business expense, provided the trips are “wholly and exclusively” for business.
For the 2025/26 tax year, the AMAP rates are unchanged from previous years, as confirmed by HMRC’s latest guidance (www.gov.uk/government/publications/rates-and-allowances-travel-mileage-and-fuel-allowances).
Here’s a quick look at the rates:
Vehicle Type | Rate for First 10,000 Miles | Rate After 10,000 Miles |
Car or Van | 45p per mile | 25p per mile |
Motorcycle | 24p per mile | 24p per mile |
Bicycle | 20p per mile | 20p per mile |
If you’re carrying passengers on business trips, you can also claim an extra 5p per mile per passenger, as long as they’re colleagues from the same business.
Who Can Claim MAR and When?
None of us wants to miss out on tax relief we’re entitled to, right? To claim MAR, you must meet specific criteria. First, the vehicle must be yours, not a company car—different rules apply for those. Second, the trips must be business-related, like visiting a client or a temporary workplace (defined by HMRC as a place you attend for less than 24 months or less than 40% of your working time). Your daily commute to a permanent workplace doesn’t count.
Be careful! If your employer reimburses you at or above the AMAP rates, you can’t claim MAR—you’re already covered. But if they pay less (say, 30p per mile for 5,000 miles), you can claim the difference (15p per mile, totaling £750). Self-employed individuals don’t deal with MAPs but can claim the full AMAP rate as an expense. If your total claim exceeds £2,500, you must use a Self-Assessment tax return, not the simpler P87 form.
Why Accurate Record-Keeping Is Non-Negotiable
Now, it shouldn’t be a surprise that HMRC loves paperwork. To claim MAR, you need a detailed mileage log showing:
● Date of each journey
● Start and end locations (postcodes are ideal)
● Purpose of the trip (e.g., “client meeting at Leeds office”)
● Total miles driven
● Passenger details (if claiming the 5p rate)
Without this, HMRC could disallow your claim during an audit, and you’ll need to keep these records for at least five years after submitting your tax return. Apps like Tripcatcher or Driversnote can automate this, syncing with GPS to create HMRC-compliant logs. For example, Bronwen, a freelance consultant from Cardiff, uses a mileage app to track her 8,000 business miles annually, saving her hours of manual logging and ensuring she’s audit-ready.
How MAR Impacts Your Tax Bill
So, the question is: how does claiming MAR actually save you money? For employees, MAR reduces your taxable income, meaning you pay less income tax. If you’re a basic rate taxpayer (20% in 2025/26, applicable on earnings between £12,570 and £50,270), a £1,000 MAR claim saves you £200 in tax. Higher-rate taxpayers (40% on earnings between £50,271 and £125,140) save £400 on the same claim. Self-employed individuals deduct MAR from their profits, lowering their taxable income before tax is calculated.
Consider this: Idris, a sales rep in Manchester, drives 12,000 business miles in 2025/26. His employer pays 35p per mile, totaling £4,200. The AMAP rate allows £5,500 (10,000 miles at 45p + 2,000 miles at 25p). Idris can claim £1,300 as MAR, reducing his taxable income. As a basic rate taxpayer, this saves him £260 in tax. For self-employed folks, the full £5,500 is deductible, potentially saving thousands depending on their tax bracket.
Common Pitfalls to Avoid
Be careful! Overclaiming is a classic mistake. HMRC doesn’t allow estimates—your mileage log must be precise. Claiming for personal trips, like popping to the shops, is a no-go and could trigger penalties. Another trap is mixing methods: if you’re self-employed and choose the AMAP flat rate, you can’t also claim actual costs like fuel or repairs. Stick to one method per vehicle. Finally, don’t forget the deadline—Self-Assessment returns for 2025/26 are due by 31 January 2027, but you can claim for the past four tax years if you’ve got records.
HMRC Mileage Allowance Calculator - Tax Year 2025/26
Step-by-Step Guide to Entering Mileage Allowance Relief on Your Self-Assessment
Now, you’ve got a handle on what Mileage Allowance Relief (MAR) is and who can claim it, so let’s get into the nitty-gritty of actually putting it on your Self-Assessment tax return. Whether you’re an employee topping up a stingy employer reimbursement or a self-employed business owner claiming those miles as expenses, the process can feel like navigating a tax maze. Don’t worry—we’ll walk through it step by step, throw in some practical tips, and highlight how to make your claim bulletproof for HMRC. Plus, we’ll dig into some trickier scenarios to ensure you’re covered, even if your situation’s a bit unusual.
How Do You Calculate Your MAR Claim?
So, the question is: how do you figure out exactly what you can claim? For employees, it’s about the gap between what your employer pays you (Mileage Allowance Payments, or MAPs) and HMRC’s Approved Mileage Allowance Payments (AMAP) rates for 2025/26. Let’s break it down with an example. Say you drive 6,000 business miles in your car. The AMAP rate is 45p per mile, so you’re entitled to £2,700 (6,000 × 0.45). If your employer pays you 30p per mile (£1,800), your MAR claim is the difference: £900 (£2,700 - £1,800).
Self-employed folks have it simpler—you claim the full AMAP rate as a business expense. For those same 6,000 miles, you’d claim the whole £2,700. If you’ve got passengers (like colleagues or employees), add 5p per mile per passenger. Here’s a quick table to show how it adds up for a car, assuming one passenger for all trips:
Miles Driven | AMAP Rate (Car) | Passenger Rate | Total Claim (Employee MAR) | Total Claim (Self-Employed) |
6,000 | 45p per mile | 5p per mile | £900 (if employer pays 30p) | £3,000 (45p + 5p × 6,000) |
12,000 | 45p/25p* | 5p per mile | £1,300 (if employer pays 30p) | £6,000 (10,000 at 50p + 2,000 at 30p) |
*45p for first 10,000 miles, 25p thereafter.
Be careful! Always double-check your mileage log against your claim. HMRC can request proof, and errors could mean repaying tax plus penalties.
Step-by-Step Guide to Entering MAR on Self-Assessment
Now, let’s walk through how to input MAR on your Self-Assessment return, whether you’re using HMRC’s online portal or paper forms. This applies to the 2025/26 tax year, due by 31 January 2027 (online) or 31 October 2026 (paper). You can check your tax obligations at www.gov.uk/check-income-tax-current-year.
Log In or Register: If you’re new to Self-Assessment, register at www.gov.uk/register-for-self-assessment. You’ll need your National Insurance number and UTR (Unique Taxpayer Reference). Returning users, log into the HMRC portal.
Select the Right Section: Employees use the “Employment” section (SA102). Self-employed individuals use the “Self-Employment” pages (SA103, short or full, depending on turnover).
Enter Employment Details (Employees): In the “Employment” section, list your employer’s details. Under “Expenses,” find the box for “Travel and subsistence” (Box 16 on paper forms). Enter your MAR claim here (e.g., £900 from the example above).
Enter Self-Employment Expenses (Self-Employed): In the “Self-Employment” section, go to “Business expenses” (Box 17 on the full SA103). Include your total mileage claim (e.g., £3,000) under “Other expenses” and note “Mileage Allowance” in the description.
Check and Submit: Review your calculations. HMRC’s online system may prompt you to confirm expense details. Submit by the deadline and keep your mileage log handy.
Claim for Past Years (if applicable): Missed MAR for 2021/22 to 2024/25? You can amend past returns or use form P87 for smaller claims (under £2,500) at www.gov.uk/tax-relief-for-employees.
Here’s a tip: take screenshots of each step in the online portal. If HMRC queries your claim, you’ve got a record of what you entered.
What If You Have Multiple Jobs or Mixed-Use Vehicles?
Now, consider this: what if your situation’s a bit more complicated? Say you’ve got two jobs, or you’re both employed and self-employed, using the same car. For multiple jobs, calculate MAR separately for each employer’s business miles. If Employer A pays 20p per mile for 3,000 miles and Employer B pays 40p for 2,000 miles, you’d claim £750 (25p × 3,000) and £100 (5p × 2,000) respectively, entering each in separate “Employment” sections.
Mixed-use vehicles (business and personal) are trickier. For employees, only business miles count—your commute to a permanent workplace doesn’t qualify. Self-employed individuals must apportion miles carefully. Take Rhiannon, a self-employed florist in Swansea. She drives 10,000 miles annually, but only 60% (6,000 miles) are business-related (deliveries, supplier visits). She claims £2,700 (6,000 × 0.45), not the full 10,000 miles. If she used actual costs (fuel, repairs), she’d need receipts and could only claim the business-use percentage.
How Do You Handle HMRC Audits?
Be careful! HMRC audits are more common than you’d think, especially for high mileage claims. In 2024, HMRC investigated 1.2 million Self-Assessment returns, with travel expenses a top focus (source: www.gov.uk/government/statistics/hmrc-tax-compliance). To stay audit-proof:
● Use a Digital Log: Apps like MileIQ or spreadsheets with date, distance, and purpose are gold.
● Keep Supporting Evidence: Retain fuel receipts, service records, or client meeting confirmations, even if claiming AMAP rates.
● Explain Unusual Claims: High mileage (e.g., 20,000 miles) or passenger claims need clear justification, like a job requiring frequent travel.
For example, Tariq, a locum nurse in Birmingham, claimed 15,000 miles in 2024/25. During an HMRC query, his GPS-tracked mileage log and hospital shift schedules proved his claim, saving him from a £1,500 tax bill adjustment.
What Are the Tax Savings in Complex Cases?
Now, let’s dig deeper. Suppose you’re a higher-rate taxpayer with mixed employment and self-employment income. In 2025/26, you drive 8,000 business miles for your employer (reimbursed at 30p = £2,400) and 4,000 for your side hustle. Your MAR claim as an employee is £1,200 (8,000 × (0.45 - 0.30)), saving £480 (40% tax rate). Your self-employment claim is £1,800 (4,000 × 0.45), reducing taxable profits. Combined, you save £1,200 in tax, assuming your total income stays in the higher-rate band (£50,271–£125,140).
Key Takeaways and Advanced Tips for Maximising Your Mileage Allowance Relief
Now, you’ve got the basics of Mileage Allowance Relief (MAR) and a clear guide on how to enter it on your Self-Assessment tax return. Let’s wrap things up with some advanced strategies to ensure you’re squeezing every penny out of your claim while staying on HMRC’s good side. We’ll also dive into some less common scenarios, like claiming for bicycles or motorcycles, and explore how to optimise your tax savings for the 2025/26 tax year. Plus, we’ll summarise the most critical points to keep you on track. This section is all about giving you the edge, whether you’re an employee or running your own business.
How Can You Optimise Your MAR Claim?
So, the question is: how do you make sure you’re getting the most out of MAR without tripping over HMRC’s rules? First, review your mileage log regularly—don’t wait until January to scramble. A mid-year check can catch errors, like including personal trips. For employees, ask your employer for a breakdown of Mileage Allowance Payments (MAPs) early; some forget to report low rates, which boosts your MAR claim. Self-employed folks, consider if AMAP rates are better than actual costs. For low-mileage drivers, actual costs (fuel, repairs, apportioned by business use) might yield a higher deduction, but you’ll need receipts.
Take Eleri, a self-employed photographer in Bristol. She drives 5,000 business miles annually. Using AMAP, she claims £2,250 (5,000 × 0.45). But her actual costs (fuel, insurance, maintenance) total £3,000, with 70% business use (£2,100). AMAP wins here, saving her time and paperwork. High-mileage drivers, though, might find actual costs more lucrative—run the numbers.
Can You Claim MAR for Bicycles or Motorcycles?
Now, consider this: what if you’re cycling or riding a motorcycle for work? HMRC’s AMAP rates cover these too—20p per mile for bicycles and 24p per mile for motorcycles (unchanged for 2025/26, per www.gov.uk/government/publications/rates-and-allowances-travel-mileage-and-fuel-allowances). These claims work the same way: employees claim the difference between employer payments and AMAP rates, while self-employed claim the full rate. Bicycle claims are rare but valuable for urban workers, like couriers or teachers cycling to temporary sites.
For example, Dafydd, a part-time lecturer in London, cycles 2,000 miles to various campuses in 2025/26. His employer pays nothing for bike travel, so he claims £400 (2,000 × 0.20) as MAR, saving £80 at the basic tax rate. Keep a log of cycle routes and purposes, as HMRC may scrutinise these less common claims. Motorcycle claims follow the same logic—perfect for delivery drivers or rural workers.
What About Claiming for Past Tax Years?
Be careful! You can claim MAR for the previous four tax years if you’ve got records. For 2025/26, that means 2021/22 to 2024/25 are fair game. Use form P87 for claims under £2,500 (available at www.gov.uk/tax-relief-for-employees) or amend past Self-Assessment returns for larger amounts. This is a goldmine if you’ve been underclaiming. In 2023/24, HMRC processed over 300,000 P87 claims, with average refunds of £350 (source: www.gov.uk/government/statistics/tax-relief-claims).
Take Sioned, a nurse in Glasgow, who realised in 2025 she didn’t claim MAR for 2022/23.
She drove 4,000 business miles, reimbursed at 25p (£1,000). Her MAR claim is £800 (4,000 × (0.45 - 0.25)), saving £160 at the basic rate. She submits a P87 form, and HMRC processes her refund within six weeks.
How Do You Handle Temporary Workplaces or Relocations?
Now, it shouldn’t be a surprise that temporary workplaces add complexity. HMRC defines a temporary workplace as one you attend for less than 24 months or less than 40% of your working time. If you’re sent to a client site for 18 months, those miles count as business travel. But if you relocate permanently, those trips become your commute—ineligible for MAR. For example, Aled, an IT consultant in Cardiff, works at a client’s office for 12 months. His 5,000 miles to the site qualify for a £2,250 claim (5,000 × 0.45, self-employed), but if the role becomes permanent, those miles no longer count.
Here’s a quick table for clarity on temporary vs. permanent workplaces:
Scenario | Eligible for MAR? | Notes |
Temporary workplace (<24 months) | Yes | Miles to client sites, project offices, or training venues qualify. |
Permanent workplace | No | Daily commute or fixed office travel doesn’t count. |
Multiple temporary sites | Yes | Log each site separately; combine miles for total claim. |
What Are the Risks of Getting It Wrong?
Be careful! HMRC’s penalties for incorrect claims can sting—up to 30% of the underpaid tax for careless errors, per www.gov.uk/government/publications/hmrc-penalty-guidance. If you claim 10,000 miles but only 7,000 are business-related, you could face a penalty on the overclaimed £1,350 (3,000 × 0.45). Always cross-check your log with diaries, emails, or client contracts. If audited, transparency is key—admit errors and provide corrected data to minimise penalties.
Summary of the Most Important Points
MAR lets employees claim the difference between employer payments and HMRC’s AMAP rates (45p/25p for cars, 24p for motorcycles, 20p for bicycles in 2025/26).
Self-employed individuals claim the full AMAP rate as a business expense, but can’t mix with actual costs for the same vehicle.
You need a detailed mileage log with dates, distances, and purposes to satisfy HMRC audits.
Employees enter MAR in the “Employment” section (Box 16) of Self-Assessment; self-employed use the “Self-Employment” section (Box 17).
Claims over £2,500 require Self-Assessment; smaller claims can use form P87.
You can claim MAR for the past four tax years if you have records.
Temporary workplaces (under 24 months) qualify for MAR; permanent commutes don’t.
Higher-rate taxpayers save 40% of their MAR claim, basic-rate taxpayers save 20%.
Apps like Tripcatcher or Driversnote simplify mileage tracking and ensure HMRC compliance.
Overclaiming or poor records can lead to HMRC penalties, so double-check everything.
FAQs
Q1: What is the deadline for submitting a Self-Assessment tax return to claim Mileage Allowance Relief?
A1: The deadline for online Self-Assessment tax returns is 31 January following the end of the tax year, while paper returns are due by 31 October.
Q2: Can Mileage Allowance Relief be claimed if someone uses public transport for business trips?
A2: No, Mileage Allowance Relief applies only to personal vehicles like cars, motorcycles, or bicycles, not public transport.
Q3: How does Mileage Allowance Relief affect someone’s tax code?
A3: Claiming MAR doesn’t directly change a tax code, but it reduces taxable income, which may lead HMRC to adjust the tax code in future years.
Q4: Can Mileage Allowance Relief be claimed for travel abroad for work?
A4: Yes, if the travel is for business purposes and uses a personal vehicle, but only miles driven in the UK qualify for AMAP rates.
Q5: What happens if someone loses their mileage log after submitting a claim?
A5: Without a mileage log, HMRC may disallow the claim during an audit, so it’s critical to recreate or back up records immediately.
Q6: Can Mileage Allowance Relief be claimed for leasing a car?
A6: Yes, leased vehicles qualify for MAR as long as they’re used for business purposes, following the same AMAP rates.
Q7: Is Mileage Allowance Relief available for electric vehicles?
A7: Yes, electric vehicles use the same AMAP rates as petrol or diesel cars (45p/25p per mile), with no separate rate for electricity costs.
Q8: Can someone claim Mileage Allowance Relief if they work from home?
A8: No, travel from home to a permanent workplace, even if working from home, doesn’t qualify unless it’s to a temporary workplace.
Q9: Does Mileage Allowance Relief apply to company vans used personally?
A9: No, MAR is for personal vehicles; company vans have separate tax rules, like benefit-in-kind charges.
Q10: Can Mileage Allowance Relief be claimed if someone is reimbursed above AMAP rates?
A10: No, if an employer pays more than AMAP rates, the excess is taxable, and no MAR can be claimed.
Q11: How does someone know if their workplace is considered temporary by HMRC?
A11: A workplace is temporary if attended for less than 24 months or less than 40% of working time.
Q12: Can Mileage Allowance Relief be claimed for volunteer work?
A12: No, MAR is for paid employment or self-employed business activities, not unpaid volunteer travel.
Q13: What if someone’s employer doesn’t provide a mileage reimbursement breakdown?
A13: They should request a payslip or statement from their employer; otherwise, they can estimate based on records but must justify it to HMRC.
Q14: Can Mileage Allowance Relief be claimed for travel to training courses?
A14: Yes, if the training is work-related and at a temporary location, the miles qualify for MAR.
Q15: Is there a limit to how many miles someone can claim for MAR?
A15: There’s no strict limit, but claims must be reasonable, supported by detailed logs, and may face scrutiny if unusually high.
Q16: Can Mileage Allowance Relief be claimed if someone uses multiple vehicles for work?
A16: Yes, but each vehicle’s miles must be logged separately, and AMAP rates apply based on the vehicle type.
Q17: What if someone forgets to claim MAR in their Self-Assessment by the deadline?
A17: They can amend their return within 12 months or claim for past years (up to four) using form P87 or amended returns.
Q18: Can Mileage Allowance Relief be claimed for business travel in a rented car?
A18: Yes, if the individual pays for the rental and uses it for business, AMAP rates apply to the miles driven.
Q19: How does HMRC verify Mileage Allowance Relief claims?
A19: HMRC may request mileage logs, receipts, or proof of business purpose, cross-checking with diaries or client records.
Q20: Can someone claim Mileage Allowance Relief if they’re on a zero-hours contract?
A20: Yes, as long as the travel is for business purposes and meets HMRC’s criteria, contract type doesn’t affect eligibility.
About The Author:
Adil Akhtar, ACMA, CGMA, CEO and Chief Accountant of Pro Tax Accountant, is an esteemed tax blog writer with over 10 years of expertise in navigating complex tax matters. For more than three years, his insightful blogs have empowered UK taxpayers with clear, actionable advice. Leading Advantax Accountants as well, Adil blends technical prowess with a passion for demystifying finance, cementing his reputation as a trusted authority in tax education.
Email: adilacma@icloud.com
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