UK company car guides — BIK tax, salary sacrifice, electric company cars, mileage claims, and car allowance comparisons.
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Company car or cash allowance (2026/27): how benefit-in-kind is set by list price and CO2, why a cash alternative changes the sum, and the 55p mileage rate.
The HMRC mileage rate for cars rose to 55p from April 2026. What you can claim for using your own car, how to claim the shortfall, and company car fuel rates.
Driving for work brings its own set of rules, and most of them are about tax. If the car is your employer's, what you pay depends on its list price and emissions, and what you can be reimbursed for fuel is set by HMRC's advisory fuel rates, which change every quarter. If the car is your own, there is an approved rate per business mile your employer can pay tax-free, and a route to claim tax relief on the shortfall if they pay less.
The guides in this section quote those figures from GOV.UK with the date they were read, because the rates move: the approved mileage rate for cars changed in April 2026 after years at the same level, and the fuel rates are reviewed in March, June, September and December. They also cover the records HMRC expects and the difference between a business journey and the ordinary commute.
A high business mileage is also what makes a used ex-company car cheap. The MOT record shows the mileage at every test since 2005, which is the quickest way to see whether a car's miles were steady motorway work or something else. Our free car check shows that history for any UK registration.
Check any UK car before you buy — free.