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28 June, 2022 - 2 min read

HMRC mileage rate 2022

The UK mileage allowance rate 2022 is the rate set by HMRC for standard mileage reimbursement. The standard HMRC mileage rate is published each year before the start of the new tax year.

What is the HMRC business mileage rate for 2022?

The HMRC business mileage rate for 2022 has been published and it has not changed since the last tax year. This comes as no surprise, as the HMRC mileage allowance rates have stayed the same for the past 12 years.
The mileage allowance rate for the 2022/2023 tax year 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.

You can also find the new business mileage rate for 2022 on HMRC’s official website.

What is the 2022 mileage rate for motorcycles and bicycles? 

Just like the regular car mileage rate, the updated one for motorcycles and bicycles is published every year. These rates have also seen no change for the 2022/2023 tax year, remaining at:

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

The HMRC mileage rate for 2021/2022 year

The 2021 rates are: 

  • 45p per mile for cars and vans for the first 10,000 business miles travelled (25 pence over 10,000 miles)
  • 24p per mile for motorcycles
  • 20p per mile for cycles

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 your 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. 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. Keep in mind that your employer is not obliged to pay a passenger rate.

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 programme 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.

FAQ

The mileage allowance is meant to cover all costs associated with using your vehicle for business purposes, such as insurance, road tax, depreciation, fuel, oil and maintenance.
The mileage rate for 2022 is 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, and for cycles - 20p per mile.

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.

This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied upon for, legal, tax or accounting advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal, tax or accounting advisor.
HMRC Mileage Guide
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