Claim Tax Back On Your Mileage Today

Use your car for your job? Don’t miss out on your tax back!

If you’re required to use your car for work travel, then you should check to see if you are owed a mileage tax rebate from HMRC.

How do I claim a mileage tax rebate from HMRC?

The way in which HMRC wants you to claim your mileage tax rebate depends on the value of your claim and if you already complete a self assessment tax return.

There are two types of forms HMRC use for mileage claims with a P87 expected for claims worth less than £2500 and a self assessment tax return for anything over £2500.

The same rules and forms apply to tax rebate claims for other types of travel for example train or bus journeys.

If you incur subsistence costs as well (food and refreshments) you should claim for subsistence at the same time on the same form as your mileage claim.

Mileage claims under £2500

The form P87 is required by HMRC for mileage claims under the value of £2500 and it can be posted or submitted to HMRC online.

TIP:

The £2500 threshold is for everything you are claiming for combined so if your mileage claim is less than £2500 but you are claiming for something else like subsistence you need to add it all together to get your claims total value.

Mileage claims over £2500

HMRC expects a claim for mileage over £2500 to be sent in on a self assessment tax return. If you already complete a tax return for a reason other than mileage you should include your claim on the same tax return within the relevant employment section of your return.

If you don’t already have a self assessment record you can open one up by contacting the SA helpline on 0300 200 3310 or you can register at www.gov.uk/log-in-register-hmrc-online-services.

Am I eligible to claim a mileage tax rebate?

Checking your eligibility for a mileage tax refund is recommended before you make your submission to HMRC.

The validity of a mileage tax rebate claim is based on the temporary workplace rulings which are used by HMRC to determine eligibility.

You can read our temporary workplace guide to find out more about the rules and regulations and how to avoid claiming for travel that HMRC classes as normal commuting.

If you don’t meet the set criteria HMRC will reject your claim and in cases where a self assessment tax return is submitted can sometimes give you a refund and ask for it back at a later date.

How much mileage tax back can I claim?

HMRC allows you to claim .45p per mile for the first 10,000 and then .25p per mile thereafter. The number of miles claimed for at the mileage rates gives you a total claim figure and then tax relief is given on this amount.

The percentage of tax relief given depends on the highest rate of tax you pay on your income which is usually either 20% or 40%.

Use our free mileage tax back calculator to see what your claim could be worth and visit our Tax Relief page for information on other areas you may be able to claim for.