Do I need to fill in a mileage tax return?

The need to complete a Self Assessment tax return depends on the value of your mileage claim in each year.

The general rule is if you are claiming back mileage expenses worth £2500 or more in any one tax year it will be necessary to complete a Self Assessment tax return either online or by post.

You can use our free mileage tax return guide for some free mileage claim information.

Filling in your mileage tax return

If you have not been in Self Assessment in a previous tax year you will have three months from the date the tax return is issued for the tax return to be submitted before late filing penalties are imposed. Most people submit tax returns online but the option is there to complete a paper tax return if you wish.

You will be notified by HMRC, by post, if you are required to complete a tax return. If you are worried that you should be submitting a tax return, but have not heard from the Tax Office, then you can call their helpline number. You can also get in touch with us to talk through your mileage claim and figure out the best course of action for your circumstances.

Mileage and PAYE

It’s common for more than one tax year to be involved in a mileage claim at the same time which means some years may not meet Self Assessment criteria. If this is the case any years with a value of below £2500 will be dealt with through the Pay as You Earn system. This means that correspondence will need to be sent to the tax office for those years separately to your tax return.

Already in Self Assessment?

This isn’t a problem, if you have filled in a tax return in the past for other reasons an amendment can be made to include your mileage expenses by way of an overpayment relief claim.

The amendment will have to be made in writing and sent to the tax office with evidence to allow for a review and your amendment to be made. If you have overpaid tax because of the amendment any tax rebate will be repaid through the Self Assessment system as normal.

Claim your mileage tax rebate directly from HMRC

You either complete a self assessment tax return or a P87 form (if your claim is worth £2500 or under in any one tax year). There is a postal option if your circumstances make it absolutely necessary. When HMRC receive your form they:

• Let you know their current processing times for mileage tax refunds.
• Analyse your application. At this point you may need to show HMRC your mileage records, so have them to hand.
• Work out how much income tax you’ve overpaid because of your mileage expenditure.
• Send your tax refund either via BACS or by cheque.