HMRC mileage rates 2024

HMRC-approved mileage rates 2024

The official HMRC business mileage rates for the tax year 2024/2025 are now confirmed, at 45p per mile for cars and vans for the first 10,000 business miles and 25p for each mile over the 10,000 mark. The rate for motorcycles is 24p, and 20p for bicycles.

The rates are applicable throughout the 2024/2025 tax year, which will run from 6 April 2024 until 5 April the following year.

Vehicle	First 10,000 miles	Over 10,000 miles
Cars & vans	45p	25p
Motorcycles	24p	24p
Bicycles	20p	20p

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Mileage rates for motorcycles and bicycles

The 2024 rates for motorcycles and bicycles remain the same as in prior years as well, at 24p per mile for motorcycles and 20p per mile for bicycles.

The allowance has remained fixed since 2011, when it last received a 5p boost. Despite the parliament’s recent debate on whether to increase it to 60p due to rising fuel and vehicle maintenance costs, the government still believes it to be an accurate estimation.

How to apply the business mileage rates

If you drive for work, the 2024 HMRC rates are one way to get reimbursed. Depending on your professional situation, the conditions in which you apply them will be different.

If you’re an employer

As an employer, the government mileage rates are the highest, at which you can reimburse your employees for business-related driving. If the allowance is calculated at a higher rate than the HMRC-approved, excess payments will be taxed as income.

If you’re an employee

If you’re an employee driving a personal car for work, your employer can reimburse you for the business miles you drive.

The reimbursement, also known as the Mileage Allowance Payment (MAP), can be paid out using the fixed 2024 per mile rate or a dedicated sum for vehicle expenses.

If your employer does not reimburse you or does so at a lower rate than the advisory HMRC allowance, you can claim Mileage Allowance Relief (MAR) from HMRC on the shortfall.

If you’re self-employed

Self-employed can claim Mileage Allowance Relief at the end of the tax year using the flat pence per mile rate (simplified method) or opt to calculate based on the actual costs of running and maintaining your vehicle.

Read our comprehensive HMRC mileage guide to find out more about rates and rules.

Keeping a mileage log in 2024

Whether you’re seeking allowance payments from your employer or deductions from HMRC, both will require that you keep adequate records of your driving and related expenses.

A timely, accurate mileage log that’s HMRC-compliant needs to contain the following information:

Date and purpose of the journey
Distance travelled
Start and end point of your journey, with full addresses and postcodes

Automated mileage tracking and logging

While some still turn to pen and paper for keeping track of journeys and miles driven, it can be a time-consuming ordeal to maintain.

A mileage tracking app can do the work for you, taking over from the moment you start your journey to the tedious end-of-tax-year reporting. It tracks and logs your business drives, allowing you to indicate their purpose and produce monthly HMRC-compliant reports.

FAQ

What is the HMRC mileage rate for 2024?

Same as last year, HMRC has set the rates for the financial year 2024/2025 as the following: 45p per mile for the first 10,000 business miles, and 25p per each mile over that. The rate for motorcycles is 24p and 20p for bicycles.

Why hasn’t the rate changed since 2011?

Many argue that raising the HMRC rate is long overdue. Despite the parliament’s recent debate on whether to increase the official rate from 45p to 60p due to rising fuel and vehicle maintenance costs, the government still believes it to be an accurate estimation.

Does my employer have to pay me 45p per mile?

No - the HMRC rate is advisory, not mandatory. 45p per mile is the highest allowance at which you can be reimbursed without additional tax implications. If your employer reimburses at a rate lower than the advised, you can claim Mileage Allowance Relief (MAR) from the government on the shortfall.