If you have to travel for work using your own car, and even if you get mileage costs from your employer, you can in many cases claim for a tax rebate for mileage from HMRC! Claims can be back dated for up to four years
How To Claim Your Mileage Depends On:
- How many miles you’ve driven and
- If you get paid a mileage allowance from your employer
Who Can Claim Mileage?
Anyone can claim if your employer’s mileage rate is lower than .45 pence per mile for your business journeys, or the mileage you are paid is taxed.
How Much Can I Claim Per Mile?
HMRC have agreed mileage rates of .45 pence per mile for the first 10,000 miles and .25 pence per mile thereafter.
Example…
So, if you are only given, for example 30 pence per mile from your employer, the extra 15 pence (to total to 45 pence) is being paid out of your own, already taxed income. You can therefore claim mileage tax relief on the extra 15 pence per mile.
If the mileage allowance you are paid is taxed you can claim the full mileage rates of .45p and .25p.
How Much Will I Get Back?
The amount you will get back will usually be at a rate of 20% of your total mileage claim. If you pay tax at a higher rate this will increase to 40%.
How To Claim Mileage
The value of your claim in any one tax year effects how you make your claim. If your claim is under £2500 a P87 form should be submitted to HMRC. For claims of £2500 or more a self assessment usually needs completed.
Our free mileage tax rebate guide and mileage calculator are here to give you more details and an estimation.
