Mileage rates
The simplest way to claim your car costs against tax is to claim the standard HMRC allowance of 45p per mile. Most business owners are familiar with this but there are circumstances when the rate is different.
- Above 10,000 tax miles per year the rate is reduced to 25p per mile in recognition that many of the fixed costs have already been covered.
- Carrying a business passenger the rate is increased by 5p per passenger
- If using a BICYCLE rather than a car the rate is 20p per mile
This standard allowance is to cover: fuel, MOT, insurance, maintenance, road fund licence. It does not include parking and tolls.