SA102 : Car Mileage allowance

SA102 : Car Mileage allowance

Do you ever use your car for business journeys?

Do you pay for your own fuel?

If so, you may be eligible to claim car mileage allowance.


So what is the car mileage allowance?

Basically, you can claim over 45p tax free as a mileage allowance if you use your own car for a business journey.

HMRC allows you in most circumstances to claim mileage at a rate of 45p per mile for the first 10,000 business miles in a year (this is an increase of 5p per mile since April 2011) and then 25p per mile thereafter.

If your employer will only re-imburse you at 35p per mile then you can claim the additional amount as a deduction from your taxable income from HMRC through your tax return.

Also, if you travel with two or more people from the same business, the driver can claim an additional 5p per mile passenger rate for each qualifying passenger. Hooray!

So, if 5 of you travel together, you could claim 65p per mile (45p for the driver plus 4 x 5p per mile for each passenger). To qualify, each of the passengers must be employed by, or be an officer of the business.

Car mileage allowance rates

The HMRC approved car mileage allowance rates are as follows:

  • Cars & Vans 45p (first 10,000 miles and 25p thereafter)
  • Motorcycles 24p
  • Bicycles 20p

All HMRC information here:

The team at SimpleTax are committed to making your tax experience as trouble-free as possible. If there are savings to be made, we’ll tell you about it. Car mileage allowance is just one of many tips we offer SimpleTax readers. Stay tuned for more tax saving tips; Go SimpleTax



Other Keywords: sole trader; freelance; agency; business; sub-contractor; private; umbrella; trade; fuel; petrol

    • Related Articles

    • SA103: Entering your car as a capital allowance

      1. Ensure you have the 'Car, van & travel expenses' group on your SA103 form 2. Click on ADD 3. Click on 'Car purchase' from CATEGORY dropdown 4. Enter the date you 'purchased the car' or 'introduced it into the business' 5. Type in a description to ...
    • SA105 : How do I record mileage allowance for journeys made in inspect my rental property?

      On the form SA105 there is no specific box for entering mileage expenses so any claim needs to be made in box 20 'Other allowable property expenses'. To do this, please: 1. Click on GROUP '+' under the 'EXPENSES' section 2. Select 'Travel' from group ...
    • SA106 : Foreign Income: Property Income Allowance

      Full Relief - If your property Income is less than £1000, the property allowance provides for full relief from income tax Not only is there no income tax to pay, but also no need to register with HMRC or file tax returns provided property income is ...
    • SA105 : Property Income Allowance

      If your property income is over £1,000 and you’re claiming property income allowance, the total amount of the allowance claimed from all property businesses (this includes overseas property businesses) cannot exceed £1,000.   Under Property Income, ...
    • Trading Income Allowance

      Please watch the following video or follow the instructions as shown below: 1. Once you're on the 'Self-employed (SA103)' page, click '+ INCOME' 2. Select 'Trading Income Allowance' from the drop-down list of categories 3. Click 'SAVE' once you're ...