Can I claim mileage tax relief if I’m paid less than 45p per mile?

Yes. If your employer pays you less than the HMRC-approved rate for mileage, you could be eligible to claim tax relief on the difference. This is one of the most common reasons UK workers miss out on rebates worth hundreds.

In this guide, we explain how it works, who qualifies, and how to claim the shortfall, even if you’re already being paid per mile.

What is the HMRC mileage rate?

HMRC allows employers to reimburse employees up to 45p per mile for the first 10,000 miles in a tax year. Anything below that is considered underpayment, and you can claim tax relief on the difference.

Example:

• Your employer pays you 25p per mile
• HMRC allows 45p per mile
• You can claim tax relief on the 20p per mile shortfall

Am I still eligible if I receive some mileage payments?

Yes. Many people think receiving any mileage payment disqualifies them. But if it’s below the full HMRC rate, you can still claim. You don’t have to receive zero.

What do I need to make a claim?

You’ll need:

• An estimate of how many work-related miles you drove
• The mileage rate your employer pays
• Confirmation that you’re employed under PAYE

If you’re unsure, TaxBax helps calculate it for you.

How far back can I claim?

You can backdate your claim up to four tax years . If you’ve never claimed before, that could add up to thousands of pounds .

How much can I get back?

Typical rebates range from £300 to £4,000 , depending on job type, mileage, and employer reimbursement rate.

Start your claim now

TaxBax makes it easy to recover money you’re owed. We calculate your shortfall, handle your HMRC claim, and get your refund paid directly.