02 December, 2021

HMRC mileage rate 2022

The UK mileage rate 2022 is the rate set by HMRC for standard mileage reimbursement. The standard HMRC mileage rate changes each year and in the middle of April, there should be a new rate that you might want to use for your mileage allowance in 2022. Whether you’re an employer or an employee, you should keep an eye on the new rate as it may impact your allowance or reimbursement. 

What is the HMRC business mileage rate for 2022?

The HMRC business mileage rate for 2022 is not known yet but the rate has been the same for 12 years so it is highly likely that nothing will change for you after April. The new rate (if there are any) will be available sometime in the middle of April and we will make sure to update this post as soon as the rates are out. You can also find the new business mileage rate for 2022 on HMRC’s official website.

Put your car log book on autopilot

Automate your mileage logging

What is the 2022 mileage rate for motorcycles and bicycles? 

Just like the regular car mileage rate, the updated one for motorcycles and bicycles will be available sometime in the middle of April. 

The rates may remain the same 

Keep in mind that HMRC mileage rates have not changed in 12 years. This means that it is likely that they will remain the same in 2022. 

The HMRC mileage rate for 2021/2022 year

The 2021 rates are: 

  • 45p per mile for cars and vans on the first 10,000 miles travelled (25 pence over 10,000 miles)
  • 24p per mile for motorcycles
  • 4p per mile for fully electric cars

Which trips can I claim reimbursement for in 2022? 

You can claim reimbursement for any trips you took for business/work purposes. Here are some examples of trips you can claim reimbursement for in 2022:

  • Travelling to meet a client for work
  • Travelling from your office to another work location to complete a job
  • Travelling to a conference

In 2022, you will not be able to claim reimbursement for trips such as:

  • Commuting from home to work and back
  • Personal trips such as picking up children from school

Can I use a different mileage allowance than the standard in 2022? 

Yes, even though HMRC set a standard rate, you may not have to use that same rate for your reimbursement. In the UK, employers can set a different rate for reimbursement than the standard one. 

If the employer pays back at a lower rate, the employee can apply to HMRC for mileage allowance relief at the end of the tax year to cover the difference. For example, if your employer pays 30p per mile, you can claim tax relief on the difference of 15p per mile. At the same time, any reimbursement you get above the standard rate set for 2022 will be taxed.

Is the reimbursement the same if I am driving with others for business purposes? 

If you travel with two or more people from the same company, as a driver you can ask your employer for an additional 5p per mile passenger charge for each additional passenger. Keep in mind that this can only happen if everyone who travels with you is employed by the same company.

For example, if you are 4 people travelling in the same car, who also work for the same company, you can claim up to 60p per mile from your employer. However, this does not go into the standard mileage rate and will be taxable. 

How do I best reimburse my employees in 2022?

We don’t expect much to change when it comes to reimbursement in the following year. The best way to reimburse employees will depend highly on your situation. However, you can always make things a bit easier for your employees by setting up a mileage reimbursement program or providing them with some standard way in which they can record mileage.

Introducing your employees to the Driversnote app can be one way to make the process easier. In the app, you can set your own custom mileage rate, track trips automatically and generate reports quickly that can be handed over to a manager or accountant at any time. 

Learn more about mileage reimbursement options for your company or team

Keep an eye on this page for any updates on the HMRC 2022 mileage rates and let us know if you have any questions!