Calculate Your Mileage Tax Relief Easily
Discover how much you could claim back with our mileage tax relief calculator.
Using the approved mileage allowance rates and the rate at which you pay tax you can quickly estimate how much your mileage tax rebate could be.
The mileage tax relief calculator uses the current approved mileage rates of .45p per mile for the first 10,000 business miles and .25p per mile for every business mile after that.
The rate at which you pay tax also affects the amount you are owed.
For example if you pay tax at 40% and the total figure you are claiming is £2000 you will receive a mileage tax rebate of £800 (which is 40% of £2000).
If you carry business passengers, you can claim an additional 5p per passenger per mile for cars and vans.
Read on to understand exactly how much HMRC owes you and the process of maximising your mileage tax rebate claim.
How far back can I claim for a mileage tax refund?
HMRC allows backdated claims for up to four previous tax years plus the current tax year.
If you’ve been eligible but haven’t claimed, you could be entitled to several years’ worth of relief.
This could result in substantial rebates if you’ve been doing significant business mileage without claiming.
If you have had multiple employers or no longer working with an employer a claim is still valid.
Am I eligible to claim mileage tax relief?
Any employee who uses their personal car, van, motorcycle, or bicycle for business travel to temporary workplaces can potentially claim.
You must be traveling somewhere other than your normal place of work, and the destination should be temporary rather than a permanent work location.
HMRC’s definition of a ‘temporary’ workplace can be different from it’s everyday use.
According to HMRC, a ‘temporary’ workplace refers to a place where workers perform their tasks over a set period tied to their main job duties.
This period typically lasts under 24 months. If you continue working there for more than 24 months without a break, it no longer counts as temporary. This guideline is known as the 24-month rule.
You can read more about the temporary workplace regulations in our guide.
Can I claim mileage tax relief if my employer pays me an allowance?
Some but not all employers contribute to mileage costs by making mileage allowance payments (MAP).
You can still make a mileage claim if you are paid a mileage allowance by your employer but it depends on how much you are paid per mile and if it is taxed.
Taxed mileage allowance:
A taxed mileage allowance paid by your employer means you can still claim back the full approved mileage rates.
Untaxed mileage allowance:
If you’re paid an untaxed mileage allowance a claim will only be possible on the difference between the approved mileage rates, and what you are paid by your employer. If your employer has paid you the full approved mileage rates and not taxed it, you become ineligible.
Do I need records to claim mileage tax relief?
HMRC expects mileage records to be provided with your initial P87 claim form or online submission.
Evidence isn’t requested when initially submitting a self assessment tax return but may be requested by HMRC at a later date.
- You need detailed records showing dates, destinations with postcodes, business purposes, and mileage for each journey.
Unlike actual expense claims, you don’t need fuel receipts or other purchase documentation. A simple logbook, spreadsheet, or mileage tracking app provides sufficient evidence for most claims.
- A statement from your employer is also required if you are not reimbursed for mileage explaining this fact.
Examples of people who could be owed a mileage tax rebate
Many people are eligible to claim mileage tax back. The important thing to remember is that your job title is not relevant to the eligibility criteria.
Clocking up business mileage in your own private vehicle to a temporary workplace makes a claim worth considering.
Some common examples of trades and professions that can qualify include:
- Carers and healthcare workers – to clients in the community.
- Offshore workers who live in and outside the UK – for travel to the heliport.
- MOD personnel including the Army, Navy and RAF – to be eligible you must have completed phase 1 basic training.
- Sales people – visiting potential leads and for training.
- Construction workers – travelling to different sites.
- Estate agents – attending viewings for potential house buyers.
How do I claim my mileage tax back?
How HMRC wants you to claim your mileage tax relief depends on how much you are claiming back and if you already complete a self assessment tax return.
Mileage claims worth over £2,500:
Making a mileage claim worth £2,500 or more for a single tax year should be made by using a self assessment tax return.
If you already complete a tax return for other reasons you should include your mileage claim on the same tax return in the relevant employment section.
Mileage claims worth less than £2,500:
Claims that do not exceed £2500 in any one tax year should be filed by using a P87 expenses of employment form or HMRC’s online iForm via .GOV.
If you are making a mileage claim for more than one tax year at the same time you can include it on the same P87 form.
The P87 can be filled in online so it can be downloaded and posted to HMRC.
HMRC’s online iForm is available for mileage claims that are being sent to HMRC digitally and not by post.
Other expenses and your mileage claim
If you have other allowable work expenses that are not related to mileage you should include them on the same claim form.
Other allowable expenses can include items like tools and for the cost of laundering your work uniform.
It will be easier for both you and HMRC if you can claim for everything you are entitled to at the same time.
Mileage claims and your tax code
After a successful mileage tax relief claim HMRC usually adjusts your tax code if you are continuing to use your car to travel to temporary workplaces.
HMRC typically uses the figures from your previous mileage claim for the basis of your new tax code.
In theory this means that you receive mileage relief during the tax year by paying less tax each time you are paid by your employer.
Checking your tax code if it includes mileage expenses is always recommended because if the allowance HMRC gives in your tax code is not accurate you could underpay tax at the end of the year.
You can ask HMRC to amend your tax code if you feel the tax code you have been given does not accurately reflect your mileage and other work related expenses.
Calculating a Mileage Tax Rebate Frequently Asked Questions
What are some common misconceptions about mileage claims?
Some people wrongly believe that any employer mileage payment means they can’t claim relief, or that they need to keep every fuel receipt.
In reality, you can claim if you receive less than HMRC rates, and the approved rates system eliminates the need for detailed expense receipts.
Another misconception is that claiming will complicate your tax affairs – most claims are straightforward and can be completed online.
What if I can’t prove every single business journey I’ve made?
While you should maintain good records going forward, HMRC understands that people don’t always keep perfect records.
If you can demonstrate a pattern of business travel and provide reasonable estimates based on your work requirements, this is often acceptable.
The key is being honest and reasonable in your calculations.
Will claiming mileage relief trigger an HMRC investigation?
Legitimate mileage claims are routine and expected by HMRC.
As long as your claims are reasonable, well-documented, and honest, there’s no increased risk of investigation.
HMRC processes thousands of mileage claims annually – it’s a normal part of the tax system designed to ensure fair treatment of business vehicle users.
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