The short version
- Separate business travel from commuting
- Keep a journey log
- Check what the employer pays
- Use HMRC's current approved rate
Which journeys are relevant
Travel between workplaces, to a client or to a temporary workplace may qualify depending on the facts. The normal journey between home and a permanent workplace generally does not.
Record date, start, destination, business purpose and mileage. A calendar entry without distance or purpose may not support a later claim.
Employer payment and tax relief
HMRC publishes an approved mileage amount for bicycles. An employer can pay up to the approved amount for qualifying travel under the mileage rules.
Where the employer pays less, an eligible employee may claim tax relief on the difference. Tax relief is not reimbursement of the full shortfall; it reduces tax based on the claimant's circumstances.
Do not mix business structures
Mileage allowance payments apply to employees using their own bicycle for business travel. Sole traders and companies have different expense and ownership questions.
Use current HMRC guidance and retain evidence. Ask an accountant where a company owns the bicycle or it is a material business asset.
Check the current guidance
Rules, schemes and product ranges can change. These live links are the authoritative or independent starting points used for this guide.
