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 will investigate your set of circumstances and ensure you get everything you are entitled to.

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 2016/2017 tax year is:

TypeApproved mileage allowance payments
Car/van£0.45 per mile up to 10,000 miles (£0.25 over 10,000 miles)
If you carry a passenger in your car£0.05 per passenger per business mile
Motorcycle£0.24 per mile
Bicycle£0.20 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. If they were paying tax at 20%, their claim would be worth in the region of £900. You can use our free mileage tax relief calculator to work out what you may be owed back.

Making 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?

HMRC has its own definition of a ‘temporary workplace’ and understanding it is the key to successful mileage claims. Basically, if you work at more than one permanent physical location then you may have more allowable mileage than you expected.

Temporary workplace

Essentially, HMRC defines a ‘temporary workplace’ as somewhere you work for no more than 24 months. There are some other elements to this explanation, but the time spent there is the crucial factor.  You can claim tax relief on travel expenses to a temporary workplace.

Permanent workplace

HMRC determines a ‘permanent workplace’ as somewhere that you spend at least 40% of your working hours. You are not entitled to claim tax relief on travel expenses to a permanent workplace.

Read more information about ‘What is a temporary workplace?’

How far back can I make a claim?

HMRC allow taxpayers to make claims for the last four tax years. If you don’t claim within that timescale you will miss out on what you are owed.

Does this mean I need to fill in 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
Claiming an amount of this size for one tax year needs to be declared on a Self Assessment tax return, alongside all your other income.

Mileage claim below £2500
Any claims under this sum can submitted independently without a tax return. The claim must be made accurately, in writing and be supported by relevant documentation as evidence.

How to make a claim: we make it easy

You can make a claim yourself, or use our hassle-free service which specialises in claiming tax back on mileage. 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.

Start my mileage tax rebate claim today...

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Mileage Allowance Calculator

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Tax Rebate Calculator

Just enter the rate at which you pay tax, and the number of work miles you've driven. The mileage allowance calculator will let you know how much you can claim back.*

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*This calculator only provides an estimate and doesn’t take into consideration any mileage paid by your employer.

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