Can I Claim Mileage Tax Relief If I Use a Company Car?
If you drive a company car for work, you might assume you cannot claim mileage tax relief. But it depends on how your employer reimburses you and what kind of fuel and expenses you cover yourself. In this guide, we’ll explain when you can claim and how to make sure you’re not missing out on money you’re owed.
Can you claim mileage if you use a company car?
In most cases, no. If your employer provides a company car and covers your fuel costs, you’re not eligible to claim mileage tax relief from HMRC.
However, there are some exceptions:
You use a company car but pay for your own fuel and are reimbursed below the HMRC advisory rate
You’re required to travel for work but cover some costs out of pocket
If you pay for fuel and your employer reimburses you at less than HMRC’s approved rate (e.g. less than 14p per mile for petrol), you may be able to claim the difference as tax relief.
What’s the HMRC advisory fuel rate?
These are the suggested reimbursement rates HMRC publishes every quarter. As of 2025, they vary by fuel type and engine size, and generally fall between 13p to 17p per mile.
If your employer pays you less than the advisory rate, you could be eligible to claim tax relief on the shortfall.
What if I pay for business mileage in a company car?
If you're using a company car and not being reimbursed at all for business mileage, but paying for fuel out of pocket, you may qualify to claim tax relief. This typically applies to:
Sales reps
Engineers
Area managers
Can I claim for commuting?
No. Travel between home and a regular workplace does not qualify, even if you’re using a company car.
How to make a claim
If you think you may qualify, services like TaxBax can help check your eligibility, calculate the shortfall, and submit your claim to HMRC.
