Mileage tax rebate guide

Use your car as part of your job? You could be eligible to claim a business mileage tax rebate.

Many people don’t know they can claim mileage tax relief for some, or even all, of their work related journeys. It doesn’t matter what your job is – if you travel to different places of work, you could eligible to claim tax back on your mileage.

The mileage tax rebate guide will help you are entitled to a mileage rebate and how to claim it back.

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Can I claim?

It’s important to understand what HMRC class as business mileage. Normal commuting to one permanent place is not allowed. To be classed as business mileage you generally need to be driving to different places of work and spend no more than 24 months at any one place.

Different rules can apply to different situations which means it’s always best checking if you qualify before trying to claim. In some cases a claim can still be made if the time spent at a temporary place of work exceeds 24 months. We can help by reviewing your own set of circumstances to make sure you don’t miss out.

 

How much am I owed? – Mileage allowance rates

The amount you can claim depends on the type of transport you drive. Government approved mileage allowance relief rates for the 2014/2015 tax year are:

TypeApproved mileage allowance payments
Car£0.45p per mile up to 10,000 miles (0.25p over 10,000 miles)
If you carry a passenger in your car£0.05p per passenger per business mile
Motorcycle£0.24p per mile
Bicycle£0.20p per mile

 

The value of your claim depends on whether you pay tax at 20% or 40%.

A mileage tax rebate example:

10,000 miles @ .45p per mile = £4500

Mileage £4500 @ 20% tax relief = £900.

This example was based on a car user driving 10,000 miles during the tax year. They were paying tax at 20% their claim would be worth in the region of £900.

 

What you need to make a mileage claim

You’ll need an accurate record of your mileage. What else you need depends on your circumstances:

  • If you’re paid a mileage allowance − pay slips or timesheets showing the number of miles driven is usually enough.
  • If you’re not paid a mileage allowance – if you don’t have any records a claim is still possible, but we’ll need other information to make your claim successful.

How far back can I make a claim?

The tax office let you have four years to make a claim. If you don’t claim within that timescale you will miss out on what you are owed.

 

Do I need to complete a tax return?

The answers is yes if your claim is worth £2500 or more in any one tax year. If it is below £2500 you will not need to submit a tax return and can claim by either completing a P87 form or through correspondence.

 

How to make a claim – We make it easy

You can claim yourself or use our service which specialises in claiming tax back on mileage. Our service is hassle free. We have a 98% success rate and achieve an average mileage tax rebate of over £2,500 for our clients.

Call us today on 01228 520477 to see how we can help you or fill in our easy contact form below and we’ll call or email you back.

 

 

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Mileage tax back calculator

The mileage tax back calculator can help you work out how much your mileage claim could be worth.

All you have to do is enter your total business mileage and select your tax bracket and you will be given an estimation of how much tax back on your mileage you can claim.

Mileage tax back calculator

Total Business Miles:   
At what rate do you currently pay tax? (please select):   

Testimonials

£4,335 tax rebate

"Got my mileage tax rebate cheque today for over £4,000, it’s been well worth the effort!"

P Delaney, Regional Manager, London received £4,335 for claiming tax back on petrol mileage.

NSPCC

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