How is road tax calculated in India?

Road tax in India is calculated based on the vehicle's ex-showroom price, engine capacity, and state-specific rates. Most states charge road tax as a percentage of the vehicle value (typically 2-10%) or at fixed rates based on vehicle category. Some states offer concessions for electric vehicles and hybrid cars. Road tax is a one-time payment for private vehicles in most states.

Is road tax the same across all states in India?

No, road tax varies significantly across Indian states. Each state has its own road tax structure with different rates and calculation methods. For example, Karnataka charges 2% for cars while Maharashtra charges up to 8%. Some states like Delhi have lower road tax rates. Always check your state's specific road tax rates before purchasing a vehicle.

How to pay road tax online?

Road tax can be paid online through the Parivahan portal, state transport department websites, or VAHAN portal. Select 'Tax Payment' service, enter vehicle registration number, calculate applicable tax, make online payment, and download the receipt. For interstate purchases, road tax is paid at the time of registration in the new state.

What happens if road tax is not paid?

Failure to pay road tax can result in penalties, vehicle seizure, and fines during traffic checks. Road tax default may also affect vehicle insurance validity and renewal. Some states impose ongoing annual tax for commercial vehicles. Always carry proof of road tax payment while driving.

Can road tax be claimed back when selling a vehicle?

In most Indian states, road tax is non-refundable upon vehicle sale. The tax is considered paid for the remaining validity period but cannot be claimed back. Some states allow refund of unused road tax period when transferring registration to another state. Check with your state's transport department for refund policies.

Mileage Tracking and Car Tax UK 2026: HMRC Approved Methods

April 13, 2026 in United Kingdom — Accurate mileage tracking is essential for company car drivers and anyone claiming business mileage deductions in the UK. HMRC has specific requirements for mileage record-keeping that affect your car tax obligations. This guide covers HMRC approved mileage tracking methods for car tax in the UK in 2026.

Why Mileage Records Matter for Car Tax

For company car drivers, the benefit-in-kind (BIK) tax you pay is based on the list price of the vehicle and its CO2 emissions. However, certain deductions require documented mileage records. If you use your company car for private journeys, accurate mileage tracking ensures you can claim legitimate business mileage deductions.

Additionally, if you use your personal vehicle for business, HMRC allows mileage allowance payments that reduce your tax liability. Keeping accurate records is both a compliance requirement and a legitimate tax planning tool for car tax in the UK.

HMRC Approved Mileage Rates for 2026

HMRC publishes Advisory Fuel Rates (AFR) and Approved Mileage Allowance Payments (AMAP) that employers can use. For company cars, AMAP rates allow you to claim: Related: Mileage Tracking and Car Tax UK 2026 | UK Company Mileage Allowance 2026 | Car Salary Sacrifice Scheme UK 2026 | Company Car Tax UK 2026.

AMAP (Company Car): First 10,000 business miles per year at 45p per mile — then 25p per mile thereafter
Advisory Fuel Rate: Rates vary by engine size and fuel type — requires fuel receipts
Personal Vehicle Business Use: 45p per mile first 10k, 25p per mile over 10k — mileage log required
GPS Tracking: 45p per mile first 10k, 25p per mile over 10k — automatic log from GPS device
Manual Spreadsheet: 45p per mile first 10k, 25p per mile over 10k — contemporaneous entries only

These rates cover fuel, depreciation, insurance, and maintenance. You do not need to keep receipts for individual fuel purchases if you use AMAP rates.

What Records You Must Keep

For HMRC compliance, your mileage records should include the date of each journey, the start and end locations (postcode is sufficient), the purpose of the journey (business or personal), and the total miles covered. A simple mileage log spreadsheet is acceptable, but more robust methods include dedicated apps or GPS tracking devices.

For company car BIK purposes, HMRC can request your mileage records to verify the business use percentage. All HMRC-acceptable methods require the records to be contemporaneous — created at the time of the journey, not reconstructed later.

Digital Mileage Tracking Solutions

Several smartphone apps and vehicle tracking devices provide automated mileage logging that meets HMRC requirements:

Motus: GPS-verified mileage tracking with automatic HMRC-compliant reports
Elsa Connect: Vehicle dongle with automatic mileage and fuel logging
QuickBooks Self-Employed: Mileage tracking with automatic trip detection
TaxD Free Mileage Tracker: Simple manual entry with HMRC-compliant export

Apps that use GPS to automatically record start/end points provide the strongest evidence if HMRC challenges your records. Choose a solution that creates timestamps automatically rather than relying on manual entry.

Penalties for Inaccurate Mileage Records

If you claim mileage deductions without adequate records, HMRC can disallow the claim and impose penalties. For deliberate non-compliance, penalties can reach 100% of the tax underpaid. Even for careless errors, penalties of up to 30% apply.

For company car drivers, if your employer fails to report accurate BIK values due to missing mileage records, both the employer and employee can face penalties. The employer is primarily responsible for reporting BIK values accurately to HMRC on a P11D form.

Conclusion

Proper mileage tracking for car tax in the UK means contemporaneous records — date, route, purpose, and mileage. Use HMRC's AMAP rates of 45p per mile (first 10,000) and 25p thereafter to claim business mileage deductions. Download the GOV.UK mileage allowance rates and start logging today.

Frequently Asked Questions

Q: How much is car tax (VED) in the UK 2026?
Car tax rates in the UK depend on your vehicle's CO2 emissions and list price. Standard rates start from £190 per year for petrol and diesel cars, with zero-rated VED for EVs. First-year rates vary from £0 to £2,605 depending on emissions. Additional premiums apply for vehicles over £40,000.

Q: How do I check if my car is taxed online?
You can check your vehicle's tax status for free on the Gov.uk website at gov.uk/check-vehicle-tax. You'll need your vehicle's registration number (number plate). You can also check via the Motor Insurance Database to verify road tax and insurance status simultaneously.

Q: Can I get a refund on car tax if I sell my vehicle?
Yes — if you sell or scrap your vehicle, you can claim a refund on any full months of remaining road tax. Contact DVLA with the V11 reminder letter or apply online at gov.uk. Refunds are usually processed within 4-6 weeks.

Q: Is road tax refund available when transferring ownership?
No — road tax does not transfer with the vehicle. When you sell your car, the tax is automatically cancelled and any remaining months are refunded to you by DVLA. The new owner must tax the vehicle immediately. As a buyer, always verify the vehicle's tax status before purchasing.

Q: What is the luxury car tax threshold in the UK 2026?
The additional rate for vehicles over £40,000 (list price) adds £410 per year to standard VED rates for years 2-6 of registration. This surcharge brings the annual cost for high-emission vehicles over £40,000 to around £600-690 per year. Pure EVs under £40,000 pay zero VED.