Mileage Reimbursement – What It Is and How to Claim It

If you drive your own car for work, you’re probably told you can get paid back for the distance you travel. That payment is called mileage reimbursement. It’s a way for employers or the tax system to cover fuel, wear and tear, and other costs you incur while on the job.

How to Calculate Your Mileage

The UK government sets a standard rate that most companies use. As of 2025 the rate is 45p per mile for the first 10,000 miles you travel in a tax year, then 25p per mile after that. To work out your claim, multiply the number of miles you drove for work by the appropriate rate. For example, if you drove 300 miles in a week, the calculation is 300 × 0.45 = £135.

Keep a simple log: note the date, start and end locations, and the purpose of each trip. You can use a notebook, a spreadsheet, or a mileage‑tracking app – just make sure the data is clear and accurate.

Common Policies and Tips for a Smooth Claim

Most employers have a form or an online portal where you submit your mileage log. Attach any supporting documents the company asks for, such as fuel receipts or a signed declaration that the miles were business‑related.

If you’re self‑employed, you can claim mileage as a business expense on your Self‑Assessment tax return. The same HMRC rates apply, and you’ll reduce your taxable profit by the amount you claim.

Here are a few quick tips to avoid headaches:

• Record trips as soon as they happen – memory fades fast.
• Separate personal and business travel; only business miles count.
• Check your employer’s policy for any caps or required approval steps.
• Use the correct rate for the period you’re claiming – rates can change each tax year.

When you submit a claim, double‑check the math and make sure the total matches the mileage you logged. A small mistake can delay payment.

For courier companies like Same Day Express Delivery, drivers often have GPS‑based tracking that automatically records mileage. If you work with us, ask about our driver portal – it can pull the data straight into your reimbursement form, saving you time.

In short, mileage reimbursement is a straightforward way to get back the cost of using your own vehicle for work. Keep good records, use the current HMRC rates, and follow your employer’s process. Do that, and you’ll see the money back in your bank without any surprise deductions.