Mileage tax relief is given by HMRC for the use of your own vehicle when traveling for particular work journeys. The tax relief is not available for normal commuting and is there to help cover the cost of the travel you have to undertake because of your job.
Who Can Claim Mileage Tax Relief?
Mileage Tax Relief can be claimed by anyone who pays tax and who travels to temporary workplaces or traveling appointments.
An example of someone who travels to appointments is a salesman who visits different clients in his own car.
An example of someone attending a temporary workplace is a joiner who travels to different sites and spends less than 24 months at each site.
What is a temporary workplace?
In general a temporary workplace is defined as a place of employment which last for less than 24 months and is visited for more than 40% of your work time.
How Much Mileage Tax Relief Can I Claim?
The amount of mileage tax relief you can claim is determined by the approved mileage allowance payment rates ( AMAP ). In this current tax year the mileage allowance rate for using your own car is .45p per mile for the first 10,000 business miles, after 10,000 miles you can claim .25p per mile for each mile.
Being paid a mileage allowance by your employer can affect your mileage claim. If the mileage allowance paid is untaxed this amount should be deducted from your claim. If you are paid a taxed mileage allowance the total approved mileage rates should be claimable.
How Can I Claim Mileage Tax Relief?
To claim mileage tax relief it is always best to have records of the journeys you have undertaken with dates. Depending on your employer you may be paid a travel allowance for using your own car for work use.
If this is the case the amount paid to you and if it is taxed or untaxed is normally necessary. If you do not have records a mileage claim will be more difficult to complete but is still possible.
You should start your mileage claim either on a P87 and sometimes a self assessment tax return.
