Mileage Tax Rebate
There is a huge possibility that you are not getting the right mileage allowance or may not know that you are eligible for it.
Don’t worry here is a simple guide for you.
Using your own vehicle for work
If you use your own vehicle or vehicles for work, you may be able to claim tax relief on the approved mileage rate. This covers the cost of owning and running your vehicle. You cannot claim separately for things like:
- fuel
- electricity
- road tax
- MOTs
- repairs
To work out how much you can claim for each tax year you’ll need to:
- keep records of the dates and mileage or your work journeys
- add up the mileage for each vehicle type you’ve used for work
- take away any amount your employer pays you towards your costs, (sometimes called a ‘mileage allowance’)
Approved mileage rates
| Vehicle type | First 10,000 business miles in the tax year | Each business mile over 10,000 in the tax year |
| Cars and vans | 45p | 25p |
| Motorcycles | 24p | 24p |
| Bicycles | 20p | 20p |
Using a company car for business
You can claim tax relief on the money you’ve spent on fuel and electricity, for business trips in your company car. Keep records to show the actual cost of the fuel.
If your employer reimburses some of the money, you can claim relief on the difference.
HMRC allows you to claim 45p per mile for the first 10,000 miles and 25p for over 10,000 miles for your fuel and other vehicle expenses.
Business mileage
Traveling to visit worksites and meet clients from home for your job purposes is covered under the business mileage.
You can claim within 4 years after the end of tax year. However, travelling from home to your permanent workplace is not eligible.
Already getting paid by your employer ? Check your right mileage allowance as per HMRC tax relief by using our tax refund calculator.
Don’t worry about the tax claim process. .
Just answer a few basic questions and leave the rest to us.
The whole process can take upto 6-8 weeks. However, we will keep you updated all the time.