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:

  • 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.