What Is NHS Mileage Allowance?
NHS mileage allowance compensates staff for business travel costs incurred using privately owned vehicles. The scheme covers cars, motorcycles, and bicycles used for NHS duties beyond normal commuting. Reimbursement rates reflect current fuel prices and vehicle running costs, reviewed biannually by the NHS Staff Council.
Critically, this allowance applies exclusively to business miles travelled in excess of your regular commute. Your daily journey from home to your contracted workplace cannot be claimed under any circumstances.
Current NHS Mileage Rates 2025
Rates effective from 1 January 2023 remain unchanged following the April 2025 review. Changes occur only when motoring cost variations exceed five percent.
| Vehicle Type | First 3,500 Miles | Over 3,500 Miles | Additional Notes |
|---|---|---|---|
| Car (all fuel types) | 59p per mile | 24p per mile | Petrol, diesel, hybrid, and electric |
| Motorcycle | 30p per mile | 30p per mile | All engine sizes |
| Bicycle | 20p per mile | 20p per mile | Pedal cycles only |
| Passenger Allowance | 5p per mile | 5p per mile | Per NHS staff passenger on business |
| Reserve Rate | 30p per mile | 30p per mile | Special circumstances (see below) |
| Heavy Equipment | 3p per mile | 3p per mile | Additional allowance only |
Important: The 3,500-mile threshold represents the point where standing vehicle costs are recovered. Engine size does not affect rates. All fuel types receive identical reimbursement, including electric vehicles.
What Qualifies as Claimable Mileage?
Business Miles You CAN Claim
- Travel between NHS sites: Journeys from your contracted base hospital to other NHS locations
- Home visits: Travel to patient homes for clinical assessments or community care
- Training and meetings: Attendance at courses, conferences, or mandatory training outside your base
- Emergency call-outs: Unplanned returns to work outside contracted hours
- Temporary base changes: Travel to temporary work locations during reorganisations
- Excess mileage: Additional distance beyond normal commute when attending alternative sites
Business Miles You CANNOT Claim
- Regular commute: Daily travel from home to your contracted workplace specified in your employment contract
- Parking charges: Costs for parking at your normal base (may be claimable for other NHS sites)
- Personal errands: Any non-NHS business conducted during work journeys
- Voluntary overtime: Travel to work additional shifts you chose to accept
Critical Rule: Your employment contract defines your "normal work base." Travel to this location is ordinary commuting and never qualifies for reimbursement, regardless of distance. This remains true even if you live 40+ miles away.
How to Calculate Claimable Mileage
The NHS uses the "excess mileage principle" - you claim only additional miles beyond your normal commute distance. Calculate using these scenarios:
Scenario 1: Travel Between Sites During Working Day
Example: You work at Hospital A (your contracted base). You're asked to attend a meeting at Hospital B, then return to Hospital A.
Journey: Home → Hospital A → Hospital B → Hospital A → Home
Calculation:
- Hospital A to Hospital B: 15 miles
- Hospital B to Hospital A: 15 miles
- Total claimable: 30 miles
Why: Your home to Hospital A journey is ordinary commuting. Only the additional journey between hospitals qualifies.
Scenario 2: Direct Travel to Alternative NHS Site
Example: You normally work at Hospital A (10 miles from home). Today you're attending training at Hospital C (25 miles from home).
Journey: Home → Hospital C → Home
Calculation:
- Total distance to Hospital C and return: 50 miles
- Minus normal commute distance: -20 miles (10 miles each way)
- Total claimable: 30 miles
Why: You would have travelled 20 miles anyway for normal work. You claim only the additional 30 miles.
Scenario 3: Working from Home Base
Example: You're a community nurse. Your contract states your base is your home. You travel to 4 patient homes today.
Journey: Home → Patient 1 → Patient 2 → Patient 3 → Patient 4 → Home (total 45 miles)
Calculation:
- Total claimable: 45 miles
Why: When your contract specifies home as your base, all business travel from home qualifies for reimbursement.
Understanding the Reserve Rate (30p per mile)
The reserve rate applies in specific circumstances, paying a flat 30 pence per mile regardless of annual mileage:
| Situation | Reserve Rate Applies | Calculation Example |
|---|---|---|
| Emergency call-back to work | Yes | 20-mile round trip = £6.00 (20 × 30p) |
| Overtime requiring travel outside normal hours | Yes | 16-mile round trip = £4.80 (16 × 30p) |
| Temporary reassignment increasing commute | Yes (for additional miles) | Extra 10 miles each way = £6.00 daily (20 × 30p) |
| Declined employer's lease car offer unreasonably | Yes | All business miles at reduced 30p rate |
Common Problems and Solutions
Problem 1: Living Far from Your Hospital
Situation: You live 40 miles from your contracted hospital. Can you claim this daily commute?
Answer: No. Distance from your contracted workplace is irrelevant. Your commute is a personal choice and living arrangement decision. Mileage allowance does not compensate for housing location.
Solution: If you regularly travel to multiple sites, request your employment contract specify home as your base, or identify the most frequently visited site as your base to maximise claimable mileage.
Problem 2: Rotating Training Posts
Situation: You're a trainee rotating between hospitals. Each placement lasts 4-6 months. Can you claim excess mileage?
Answer: Potentially, but complex. Your training contract should specify how "base" is defined during rotations. Health Education England (HEE) typically assesses "reasonable commuting distance" which varies by deanery.
Solution: Contact your deanery's postgraduate education team before claiming. Request written confirmation of eligibility. Some deaneries apply distance thresholds, geographical boundaries, or require specific contract clauses. Documentation prevents retrospective claim rejections.
Problem 3: Claims Approved Then Clawed Back
Situation: Your employer approved mileage claims for six months, then demands repayment citing contract violations.
Answer: Initial approval does not guarantee continuing eligibility. Payroll departments sometimes process claims before thorough verification. Retrospective audits identify ineligible payments.
Solution: Request written pre-approval before submitting first claim. Obtain confirmation from your line manager and HR that your specific circumstances qualify. Keep this documentation. If clawback occurs, escalate through BMA representation citing employer's duty to verify eligibility before payment.
Problem 4: Moving Between NHS Trusts
Situation: You accept a position at a different NHS trust. Your new commute is longer. Can you claim the additional distance?
Answer: Generally no, unless temporarily assigned. When you accept a new permanent contract at a different trust, that location becomes your new contracted base. The commute is ordinary travel.
Exception: If your employer temporarily reassigns you (not your choice), the reserve rate may apply to additional commute distance for a limited period.
Solution: When considering new positions, factor commute costs into salary negotiations. Some trusts offer relocation allowances for senior appointments.
Mileage Allowance Eligibility Checklist
| Criteria | Requirement | Evidence Needed |
|---|---|---|
| Employment Status | Agenda for Change contract holder | Employment contract or payslip |
| Journey Purpose | NHS business beyond normal base | Meeting invitation, rota, manager authorisation |
| Vehicle Ownership | Personal vehicle (owned or leased privately) | V5C document, insurance certificate |
| Insurance Coverage | Business use included in policy | Insurance certificate showing business cover |
| Distance Calculation | Excess miles beyond normal commute | Mileage log, route mapping |
Step-by-Step Claiming Guide
Before You Start
- Verify insurance: Confirm your policy includes "Business Use" or "Class 1" cover. Social, domestic, and pleasure policies exclude work travel.
- Identify your base: Check your employment contract for "normal place of work" or "contracted base" designation.
- Obtain pre-approval: Email your line manager explaining the journey purpose and requesting confirmation it qualifies for mileage reimbursement.
- Understand your trust's system: NHS trusts use ESR (Electronic Staff Record), local expense systems, or paper forms. Contact payroll for guidance.
Recording Your Journey
- Document date and purpose: Record the date, reason for travel, and authorising manager's name.
- Log accurate mileage: Use your vehicle's odometer or mapping tools (Google Maps, AA Route Planner). Record start and end locations.
- Calculate claimable miles: Deduct your normal commute distance from total journey distance.
- Note passengers: Record any NHS staff passengers travelling for the same business purpose (adds 5p per passenger per mile).
- Track cumulative mileage: Maintain running total for the year to identify when you exceed 3,500-mile threshold and rate changes to 24p.
Submitting Your Claim
- Complete form promptly: Submit claims monthly or quarterly as per local policy. Late claims may be rejected.
- Attach supporting evidence: Include meeting invitations, training confirmations, or manager emails authorising travel.
- Manager authorisation: Obtain line manager signature or electronic approval before submission.
- Submit via correct channel: Use ESR expense module, trust portal, or paper form to payroll department.
- Retain copies: Keep duplicates of all claims and supporting documents for minimum 12 months.
Tax Implications and HMRC Rules
NHS mileage allowance exceeds HMRC's Approved Mileage Allowance Payment (AMAP) rates. Understanding tax treatment prevents unexpected liabilities.
| Annual Mileage | NHS Rate | HMRC AMAP Rate | Taxable Difference |
|---|---|---|---|
| First 3,500 miles | 59p per mile | 45p per mile | 14p per mile taxable |
| Over 3,500 miles | 24p per mile | 25p per mile | Not taxable (below AMAP) |
| Over 10,000 miles | 24p per mile | 25p per mile | Can claim 1p per mile tax relief |
What This Means for You
- First 3,500 miles: You receive 59p per mile but pay tax on 14p per mile as benefit-in-kind. A 40% taxpayer pays £19.60 tax per 100 miles (140p × 20% or 40%).
- Miles 3,501-10,000: No tax liability. NHS rate (24p) is below HMRC threshold (25p).
- Over 10,000 miles: You can claim tax relief on the 1p per mile shortfall through Self Assessment.
Example: You claim 2,000 business miles at 59p = £1,180. HMRC allows 45p tax-free = £900. The £280 difference appears on your P11D and is subject to income tax and National Insurance. A 40% taxpayer pays £112 additional tax (£280 × 40%).
Frequently Asked Questions
Can consultants claim mileage for their daily commute?
No. Consultants follow identical rules to all NHS staff. If your contract specifies a permanent base hospital, travel to that location is ordinary commuting and not claimable, regardless of seniority, salary, or distance.
Do electric vehicle drivers receive different rates?
No. All fuel types receive identical reimbursement. The NHS does not distinguish between petrol, diesel, hybrid, or electric vehicles. Everyone receives 59p per mile (first 3,500) then 24p per mile.
What if I work across multiple NHS trusts regularly?
If your role genuinely involves working at multiple sites with no single permanent base, request your employment contract designate either: (a) your home as your base, or (b) the most frequently attended site as your base. This maximises claimable mileage for travel to other locations.
Can I claim mileage when taking public transport is available?
Generally yes, if using your vehicle is reasonable. However, employers may query excessive car use when trains or buses offer comparable journey times. Document reasons for vehicle use (carrying equipment, multiple site visits same day, unsuitable public transport times).
How long can I claim excess mileage during training rotations?
This varies by deanery. Most training programmes allow excess mileage claims throughout rotation placements at distant sites, provided you remain within the deanery geographical area or meet "reasonable commuting distance" criteria. Confirm eligibility in writing before first claim.
What happens if my employer rejects my claim?
Request written explanation citing specific policy sections. If you disagree, escalate through: (1) Line manager discussion, (2) HR/payroll department review, (3) Trade union representation (BMA, RCN, Unison), (4) Formal grievance procedure if necessary. Obtain written pre-approval for future claims to prevent recurrence.
When Mileage Allowance Isn't Enough
If you consistently travel over 3,500 business miles annually, consider these alternatives:
NHS Lease Cars
Employers offer lease cars to high-mileage staff at the 3,500-mile threshold. Lease arrangements replace mileage allowance with employer-provided vehicle. Discuss with your line manager if you regularly exceed 4,000+ business miles annually.
Pool Cars
Some trusts maintain pool vehicle fleets for business travel. Pool cars eliminate mileage claims and reduce personal vehicle depreciation. Availability varies by location and department.
Purchasing Through NHS Discounts
NHS staff access preferential vehicle pricing through schemes like Motor Source. Discounts reach up to 35% on new vehicles, reducing ownership costs if high mileage is necessary for your role.
Key Takeaways
- Normal commute never qualifies: Your daily journey to your contracted base is personal expense, regardless of distance
- Only excess miles count: Deduct normal commute distance from all business journey calculations
- Current rates are 59p/24p: Higher rate applies first 3,500 miles, then drops to 24p per mile
- Reserve rate (30p) for emergencies: Call-backs and temporary reassignments qualify for flat 30p rate
- Pre-approval prevents disputes: Always obtain written confirmation before first claim in new role or situation
- Business insurance mandatory: Social, domestic, pleasure policies exclude work travel and void claims
- Tax applies to excess over HMRC rates: First 3,500 miles generate taxable benefit of 14p per mile
- Documentation protects you: Retain copies of all claims, authorisations, and correspondence for 12+ months
Final Advice: Mileage allowance compensates for business travel costs, not living arrangements or personal choices. If your commute regularly exceeds 30 miles each way, investigate relocating closer to your workplace, negotiating flexible working, or seeking positions nearer your home. Mileage allowance cannot substitute for strategic housing and career planning.
Need Further Support?
| Query Type | Contact | What They Can Help With |
|---|---|---|
| Claim Submission | Your Trust Payroll Department | Technical form completion, ESR system access, payment queries |
| Eligibility Disputes | BMA, RCN, Unison Representatives | Contract interpretation, grievance support, employer negotiations |
| Tax Implications | HMRC Self Assessment Helpline | P11D reporting, claiming additional relief, tax calculations |
| Training Post Issues | Your Deanery Education Team | Rotation-specific policies, geographical boundaries, excess mileage rules |
| Vehicle Purchasing | NHS Staff Discount Schemes | Preferential pricing, finance options, vehicle recommendations for high mileage |
