Car & Travel glossary

What is business mileage?

Business mileage is mileage travelled for qualifying work purposes, not ordinary private travel or the usual journey between home and a regular workplace.

Business mileage is the distance you travel for a work journey that qualifies as business travel. It usually covers journeys made as part of your job, such as visiting clients, travelling between work sites or driving to a temporary workplace, but it normally does not include ordinary commuting.

The key question is not whether you are travelling on a workday. It is whether the journey is genuinely for business and not simply private travel or your normal home-to-work route.

Why business mileage matters

Business mileage matters because it affects what an employer can reimburse, what an employee may be able to claim tax relief on, and which miles should be kept out of a mileage claim.

If a journey qualifies, it may be reimbursed using an approved mileage allowance payment. If it does not qualify, putting it into a claim can create tax problems or an incorrect expense record.

Estimate a mileage claim

Use business miles, vehicle type and employer rate to estimate reimbursement and possible tax relief.

Open mileage calculator

What usually counts as business mileage?

There is no single shortcut that works for every job, but common examples of business mileage can include journeys made to carry out duties away from a normal workplace.

Journey typeUsually business mileage?Why it matters
Driving from your office to a client siteOften yesYou are travelling for a work task away from your workplace.
Travelling between two workplaces on the same dayOften yesThe journey is between work locations rather than home and work.
Driving to a temporary workplaceSometimes yesThe temporary workplace rules and commuting similarity matter.
Delivering work equipment or visiting a supplierOften yesThe journey is made for business duties.

These are general examples, not a guarantee. The exact answer can depend on your employment arrangement, workplace pattern and whether the journey is substantially the same as ordinary commuting.

What usually does not count?

The biggest mistake is treating normal commuting as business travel. HMRC guidance says ordinary commuting is generally travel between home and a permanent workplace, and no deduction is normally due for that cost.

  • Home to regular office: normally ordinary commuting, not business mileage.
  • Regular workplace to home: usually the same issue in reverse.
  • Private errands during the day: not a business journey just because they happen on a workday.
  • A route that is effectively your normal commute: may still be treated as ordinary commuting even if a temporary workplace is involved.
The risky assumption is “my employer asked me to go there, so it must count.” That is not always enough. The permanent workplace, temporary workplace and ordinary commuting rules still matter.

Business mileage and HMRC rates

Once you have qualifying business miles, HMRC approved mileage rates help work out the tax-free benchmark for reimbursing an employee who uses their own vehicle.

Vehicle typeFirst 10,000 business milesEach business mile over 10,000
Cars and vans55p per mile25p per mile
Motorcycles24p per mile24p per mile
Bicycles20p per mile20p per mile

For cars and vans, the first-band rate for the 2026/27 tax year is 55p per mile. That rate is broader than fuel alone because it is intended to reflect the cost of using your own vehicle for work travel.

Worked example

Suppose you drive 320 qualifying business miles in your own car during the 2026/27 tax year and have not yet reached 10,000 business miles.

Business miles320
Approved rate55p
Approved amount£176
Approved amount = 320 miles × 55p Approved amount = £176

If your employer paid 40p per mile, they would pay £128. The shortfall against the approved amount would be £48, which may be relevant when estimating mileage allowance relief.

What records should you keep?

A mileage claim is only useful if the underlying journey record is credible. Keep enough information to show why the journey was for work and how the miles were calculated.

DateThe date of each qualifying journey.
Start and end pointsWhere the journey began and ended.
Business reasonClient visit, site visit, meeting, delivery or other work purpose.
Miles travelledThe business miles claimed, separated from private or commuting miles.

Business mileage vs fuel cost

Business mileage is about whether the journey qualifies. Fuel cost is about what the journey actually costs to drive.

For example, a petrol car might cost 18p per mile in fuel, but the approved car mileage rate may be 55p per mile for the first 10,000 qualifying business miles. The difference exists because the mileage rate is not only measuring fuel; it can also reflect wider running costs and vehicle wear.

QuestionUseBest tool
Does this journey qualify?Business mileage guidanceBusiness mileage guide
How much can I claim?Mileage reimbursement calculationMileage Reimbursement Calculator
What did the journey cost in fuel?Fuel cost and pence per mileFuel Cost Calculator

Source notes

The guidance on this page is based on GOV.UK and HMRC material. Check the latest rules again before publishing or using the page for a new tax year.

Business mileage FAQs

Is driving to my normal workplace business mileage?

Usually no. Travel between home and a regular permanent workplace is normally ordinary commuting, not business mileage.

Can a temporary workplace count as business mileage?

Sometimes. Temporary workplace travel can qualify, but not every temporary journey qualifies, especially if it is substantially the same as ordinary commuting.

Does business mileage include fuel only?

No. Business mileage is the qualifying distance travelled. Fuel cost is only one part of the cost of using a vehicle for work.

Can electric car journeys count as business mileage?

Yes, if the journey itself qualifies. The vehicle being electric does not stop a qualifying business journey from being business mileage.