Mileage allowance relief guide
Use your car as part of your job? You could be eligible to claim for mileage allowance relief.
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.
Use our free mileage allowance relief guide to find out if you can claim a mileage tax rebate and how to claim it back.
Can I claim mileage relief?
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:
|Type||Approved 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.
What is a temporary workplace?
If you’re employed and have to travel because of your job to different places you could have a temporary workplace. It’s important to understand what a temporary workplace is, because you could be entitled to claim a tax rebate for the cost of your travel.
- Temporary workplace For tax purposes a temporary workplace as a site or building which an employee attends for a length of time which lasts, or is expected to last for less than 24 months. If an employee performs their duties to a significant extent at one workplace, for more than 24 months, this will be classed as a permanent workplace.
- Permanent workplace If you have a permanent workplace you cannot claim for a tax rebate on your travel costs. A permanent workplace is generally classed as a site or building where you work at for 40% or more of your time.
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?
There are two ways you can claim back your mileage. How you claim depends on the amount you are claiming back.
- Mileage claim above £2500 – Generally if you are claiming back £2500 or more in any one tax year you will need to complete a self assessment tax return. The tax return declares all of your income and tax along with the mileage expenses you are reclaiming.
- Mileage claim below £2500 – If the total mileage you are reclaiming is below £2500 in any one tax year, a claim can be made in writing and must include records showing your business mileage.
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 allowance relief 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):|
£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.