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HMRC Mileage Rate 2023
17 April 2024 - 2 min read

HMRC Mileage Rate 2023

The HMRC has just published the mileage rate for 2023. Every spring, before the tax year begins, the HMRC releases the rate for the upcoming year. Although calling the rates “new” might be a bit of a stretch, as they have in fact not changed since 2011.

Mileage allowance 2023

The HMRC mileage rate for tax year 2023/2024 is out, and it remains at the following rate:

  • 45p for the first 10,000 miles for business purposes.
  • 25p for each business mile after the threshold of 10,000 miles.

Besides the general rules on mileage allowance, you should be aware of the National Insurance (NI) scheme that may affect mileage allowance payments from your employer.

You can learn about HMRC rules, rates and more in our UK Mileage Guide.

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What are the 2023 mileage rates for motorcycles and bicycles? 

The rates for motorcycles and bicycles are also published every year. And like the 2023 mileage rate for cars, these have not changed for this year either. This means the rates remain at: 

  • 24p per business mile for motorcycles
  • 20p per business mile for cycles

One could argue that the rates are long overdue for an adjustment. The HMRC has not changed the current rate of 45p per mile since the beginning of the 2011 tax year. This means that the mileage rate has been static for 13 years. Before we know it the current mileage rate is old enough to drive. 

How to keep a mileage log for 2023 

The requirements to your mileage log will also remain the same for 2023. You will still need to log the following for each trip: 

  • the date and purpose of your trip
  • the distance travelled
  • the start and end address of each work-related trip (including postcodes)

As you probably know, you can keep your log in a physical notebook and manually record the required details. At Driversnote we have developed a much easier way though. 

An automated logbook can make your life easier

When the new tax year rolls around, and you get the chance to start over on your driver’s log, you should consider an automated log book. 

The mile tracking app can automatically track and log your trips. It also makes it easy to add notes about the purposes of your business travel. 

In short - the app makes it easy, bordering on effortless, to keep a compliant mileage logbook. This way you can get every bit of mileage allowance you are owed for your 2023 business travel.

FAQ

Unchanged from 2022, the mileage rate for 2023 remains at 45p per mile for the first 10,000 miles and 25p per mile after that for business-related driving. For motorcycles, the rate is 24p per mile. For cycles it is 20p per mile.
If you are claiming mileage allowance for a car you can only claim the full rate of 45p for the first 10,000 miles you drive. All subsequent mileage is set at the lower rate of 25p per mile. There is one notable exception though - Mileage for National Insurance Purposes can always be claimed at the full rate of 45p per mile.
Your employer is not obliged to pay out the advisory HMRC mileage rate of 45p per mile for cars. They can choose the rate they want to reimburse employees at. Normally, this rate is at or lower than the one set by HMRC, as a higher rate will end up being taxed on the excess.

How to automate your mileage logbook

Manually filling out your logbook can get tedious - see how to automatically track trips for your mileage reimbursement or deductions.
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