If you are making a mileage tax relief claim and have a passenger when incurring your business mileage, a passenger mileage allowance can usually be claimed. The approved mileage rates are .45p per mile up to 10,000 miles and .25p per mile over 10,000 miles. The approved mileage rate for a passenger can be claimed in addition @ .5p per business mile. A mileage claim is not possible for normal commuting to one place of employment.
It is possible you are eligible to claim a passenger allowance as part of your mileage claim and don’t even know it.
For example if you are builder who travels to different temporary sites and is eligible to claim mileage tax relief, you can claim an extra .5p per mile if you have a passenger during your business travel.
In a similar way if you are a carer and take a client on a trip this type of journey should be available for passenger allowance tax relief.
How To Claim Mileage Tax Relief For A Passenger…
Claiming mileage tax relief for a passenger would be best made with your normal mileage claim. Providing a record of the journeys with dates is always recommended. If you have not claimed for passenger mileage tax relief a claim can still be made retrospectively for the last four tax years.
You should submit your claim via a P87 form or self assessment tax return and you can use our free mileage tax refund calculator to work out an estimate of your mileage tax rebate.
