---
title: "Mileage Allowance Relief UK 2026/27 | DriveQuery"
description: "Learn how HMRC Mileage Allowance Relief works when your employer pays less than the approved mileage amount, and what business-mile records you need."
canonical: "https://drivequery.com/en/mileage-allowance-relief/"
language: "en-GB"
content_signal: "search=yes, ai-input=yes, ai-train=yes, use=full"
last_modified: "2026-08-30"
ai_priority: "tier-1"
primary_intent: "informational-hmrc-mileage-claim-relief"
commercial_stage: "consideration"
query_targets: "mileage claim HMRC; HMRC mileage claim; mileage allowance relief; claim mileage from HMRC; mileage tax relief; mileage reimbursement"
image: "https://drivequery.com/assets/trip-journal.webp"
publisher: "DriveQuery"
---
[Home](https://drivequery.com/en/) / [Guides](https://drivequery.com/en/guides/) / Mileage Allowance Relief

HMRC · Mileage Allowance Relief · 2026/27

# Mileage Allowance Relief: what if your employer pays less than the HMRC mileage rate?

If you use your own Tesla for eligible business travel and your employer pays less than HMRC's approved mileage amount, you may be able to claim tax relief on the shortfall. The key input is a reliable record of qualifying business miles.


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## Quick answer

Mileage Allowance Relief can be relevant when an employee uses their own vehicle for qualifying business travel and the employer pays less than the HMRC approved amount. For 2026/27 the approved car-and-van amount is based on **55p per mile for the first 10,000 business miles and 25p after that**.

The tax-relief calculation and the journey log are separate jobs. DriveQuery focuses on the second one: keeping Tesla journeys and reviewed business mileage ready so the numbers behind a claim can be checked later.

## Questions this page answers

- Can I claim mileage back from HMRC if my employer pays less than the approved rate?
- How is Mileage Allowance Relief calculated?
- What business-mile records should I keep?
- Does Mileage Allowance Relief apply to an electric car?
- Can a Tesla mileage tracker help keep the evidence behind the claim?
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Updated 8 August 2026 HMRC rates checked 8 August 2026 ≈ 8 min read UK · HMRC tax relief

**Mileage Allowance Relief is not an extra mileage payment from HMRC.** It is tax relief on the difference between HMRC's approved amount and the qualifying mileage allowance payments you actually received from your employer.

**2026/27 car and van rate** HMRC's approved amount uses **55p per business mile** for the first 10,000 business miles and **25p per mile** after that. Electric cars and vans are included.

## 1. When can you claim Mileage Allowance Relief?

HMRC's Mileage Allowance Relief (MAR) applies when an employee uses their **own vehicle** for qualifying business travel and receives less in mileage allowance payments than the approved amount for that vehicle type. Your own vehicle can include a car you bought or leased with your own money.

If you use a company Tesla, this is not the same calculation. Company-car business travel follows different rules for fuel or electricity reimbursement.

## 2. The calculation is approved amount minus what your employer paid

Example

## £1,250 relief basis

5,000 qualifying business miles in your own Tesla, with your employer paying 30p per mile.

HMRC approved amount

### 5,000 × £0.55

**£2,750**

Employer paid

### 5,000 × £0.30

**£1,500**

The difference is **£1,250**. That £1,250 is the amount on which Mileage Allowance Relief is calculated. It is **not** a £1,250 cash refund. The actual tax saving depends on the employee's tax position and applicable income-tax rate.

## 3. If your employer pays nothing, the records still matter

An employer does not have to pay the HMRC approved mileage rate. If no mileage allowance is paid for otherwise qualifying business travel in your own car, the approved amount can still form the basis of a Mileage Allowance Relief claim. That makes a complete mileage record valuable even when there is no monthly expense reimbursement.

## 4. Ordinary commuting is not business mileage

The relief only follows mileage that qualifies as business travel. Normal travel between home and a permanent workplace is ordinary commuting and normally private travel. Travel between workplaces, to customers and to a genuine temporary workplace may qualify depending on the facts.

| Journey | Typical treatment |
| --- | --- |
| Home → permanent office | Ordinary commuting · private |
| Office → customer | Business travel |
| Customer A → Customer B | Business travel |
| Home → genuine temporary workplace | May qualify as business travel |

## 5. What mileage records does HMRC expect?

HMRC tells employees claiming vehicle tax relief to keep records of the **dates and mileage of work journeys**. When a claim is made, HMRC may require mileage logs showing the **reason for each journey** and the **start and end postcodes**. This is exactly where an automatically captured Tesla trip history becomes useful.

Home → Main office**Commute · Private**Excluded from business mileage

Main office → Client A**Business · Client visit**Purpose confirmed

Client A → Client B**Business · Client visit**Recurring pattern

## 6. You cannot add your actual Tesla running costs on top

For an employee using their own vehicle, Mileage Allowance Relief is the statutory relief for the motoring costs covered by the mileage scheme. HMRC does not let you replace it with a separate claim for actual electricity, insurance, servicing, repairs or vehicle finance simply because those costs were higher.

Other travel costs outside the mileage scheme — for example certain parking or overnight expenses — can fall under separate rules.

## 7. How far back can you claim?

HMRC's employee expense service says eligible employees can claim for the **current tax year and the four previous tax years**. If you complete a Self Assessment tax return, the mileage relief is claimed through the return instead. Historical claims still need mileage evidence, so reconstructing several years from memory is much harder than keeping the log as you drive.

## 8. Why DriveQuery fits this problem

DriveQuery can collect the factual journey trail through the Tesla connection and turn it into a reviewable mileage record: capture trip data, recognise familiar routes, suggest **Business / Commute / Private**, and keep uncertain journeys waiting for confirmation.

From trip history to tax record

## Keep the evidence before you need to claim.

Accurate business miles make both employer reimbursements and a later Mileage Allowance Relief claim much easier to support.

[Explore the Tesla mileage log →](https://drivequery.com/en/tesla-mileage-log/)

## Frequently asked questions

Is Mileage Allowance Relief the same as getting the unpaid mileage back?

No. The shortfall is the basis for tax relief. The actual tax saving depends on your tax position; HMRC does not simply pay the full shortfall to you.

Can I claim if my employer pays no mileage allowance?

Potentially yes, if you used your own vehicle for qualifying business travel and meet the conditions. The approved amount can be compared with zero employer mileage payments.

Does the 55p rate apply to my own electric Tesla?

Yes. For 2026/27 electric cars and vans are included in the car-and-van rate: 55p for the first 10,000 qualifying business miles and 25p thereafter.

Can I claim electricity costs as well as Mileage Allowance Relief?

Not for the motoring costs already covered by the own-vehicle mileage scheme. HMRC does not provide an additional deduction for actual electricity, repairs, insurance or similar running costs on top of MAR.

Do journeys to my normal office count?

Normally no. Home-to-permanent-workplace travel is ordinary commuting and usually private travel for these rules.

DriveQuery helps organise trip and mileage records. It does not decide whether a particular journey qualifies for tax relief. HMRC treatment depends on the facts of the journey and your employment circumstances.

Sources: [HMRC – vehicles you use for work](https://www.gov.uk/tax-relief-for-employees/vehicles-you-use-for-work), [HMRC – Mileage Allowance Relief overview](https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim31330), [HMRC – no additional own-vehicle motoring relief](https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim31335) and [HMRC – 2026 mileage-rate increase](https://www.gov.uk/government/publications/increase-to-approved-mileage-allowance-payments-amaps-and-self-employed-simplified-mileage-rates).

Simple formula

**Approved amount − employer mileage payments.**

- 55p first 10,000 miles
- 25p thereafter
- Own car or van
- Business journeys only

[Open mileage calculator](https://drivequery.com/en/mileage-allowance-calculator/)[Tesla mileage log →](https://drivequery.com/en/tesla-mileage-log/)

## Turn every business journey into usable evidence.

DriveQuery is being built to capture Tesla trips automatically and make business-mile records easier to review before expenses or tax claims are due.

[Join the waitlist](https://drivequery.com/en/mileage-allowance-relief/#early-access)