The HMRC mileage rates
When employees use their own vehicle for business, an employer can pay up to the HMRC approved amount without reporting it. As at 1 November 2026, GOV.UK lists 55p per business mile for the first 10,000 miles in a car or van from 6 April 2026 (45p before that date), and 25p per mile above 10,000. The page says the threshold is calculated across all vehicles an employee uses in the tax year. Rates for motorcycles and bikes are different. Rates change, so always check the current figures on GOV.UK.
What a mileage record should show
Whatever the vehicle, a useful record shows the date, where the journey started and ended, why it was made and how many miles it covered. Check HMRC guidance, or ask your accountant, for exactly what you need to keep.
What GPS tracking can and cannot do
- It can record where a tracked vehicle went, when, and how far, without anyone writing it down. Trackmatic’s hardwired tracking includes mileage, time-on-site and activity reporting.
- It cannot know why a journey was made. Someone still has to mark journeys as business or private if the difference matters for tax or for your records.
- It does not cover an employee’s own car unless a tracker or a phone-based tool is used there, with their knowledge.
Private use of company vehicles
If a company vehicle can be used privately, continuous tracking outside working hours raises data protection issues. Read whether it is legal to put a GPS tracker on a vehicle and our guide to GPS tracking and UK GDPR before you set it up.
Getting mileage data from tracking
See fleet tracking, van tracking and small fleet tracking, or contact Trackmatic with what you run and what reports you need.
Frequently asked questions
What is the HMRC mileage rate?
As at 1 November 2026, GOV.UK lists 55p per business mile for cars and vans for the first 10,000 miles from 6 April 2026 (45p before that), and 25p above 10,000 miles. Check GOV.UK for the current rates.
Can GPS tracking replace a mileage log?
It can supply the dates, routes and distances for tracked vehicles automatically. You may still need to record the purpose of each journey and separate business from private use.
Do I have to tell drivers if I track mileage with GPS?
Yes. Transparency is a core requirement under UK GDPR, and the ICO expects employers to tell workers what is monitored, why and how the information will be used.
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