If you use your own vehicle or public transport for work in many cases you can claim business mileage tax relief. You can even make claims for journeys made in the previous four tax years.
What Is Business Mileage?
Business mileage includes any journeys you make solely for work purposes, aside from commuting between your home and your workplace. This can include travel between work sites or travel from a main office to a client’s address.
What Business Mileage Allowance can I claim for?
You can claim business mileage allowances of .45p per mile for the first 10,000 business miles and .25p per mile thereafter. If you are paid a business mileage allowance by your employer this will can effect how much tax relief you can claim back. You will receive either 20% or 40% of the total mileage claim figure depending on the rate at which you pay tax.
Business Mileage Claim Example
Example based on a claim of 15,000 Business Miles…
10,000 miles @ .45p per mile = £4500.00
5000 miles @ .25p per mile = £1250.00
Total Mileage Claim £5450.00
What Business Mileage Records Do I Need?
In order to claim for a tax rebate for mileage, it is useful to have a record of the distances you have traveled and the dates of these journeys.
If you have been paid a business mileage allowance or travel allowance by your employer, a record of the amount paid will be needed. This can be in the form of pay-slips or a statement from your employer.
How Do I Claim Business Mileage Tax Relief?
Our free business mileage tax rebate guide will give you more information on the subject and let you know how to process your mileage claim with the tax office. You can also use our free mileage tax rebate calculator to work out an estimate before you claim.
