Criteria for a valid mileage claim
- The motoring costs in question must be entirely associated with your employment’s duties, not personal journeys
- Your contract of employment should indicate if you are expected to use your own vehicle in relation to your work duties
- The business travels must be necessary for you to do your job
- You need to have incurred the costs in question yourself
- Your employer did not reimburse you, or in full
Claiming travelling costs associated with normal commuting to and from work is not allowed by HMRC.
Motoring Expenses You Can Claim Tax Back On
The typical motoring expenses for which employees could normally claim tax relief may include:
- Fuel costs
- Road Tax
- Vehicle Insurance
- Servicing & Repair Charges
- Parking & Toll Costs
- Breakdown & Roadside assistance cover
Who can claim Petrol, Fuel or Mileage Expenses Back?
Typically, employees who are expected to use their own vehicle to visit multiple sites, clients or patients, can claim tax relief for their business mileage.
However, we have dealt with genuine cases where employees used a company car but their employer did not reimburse them at all or in full for their business expenses i.e. Fuel costs; Car park & toll charges. If this is your case, contact us so we can help you.
A non-exhaustive list of professions may include…
- Care workers or healthcare workers who need to visit patients
- Some NHS doctors or nurses who may need to visit multiple sites
- Construction workers or site managers who have to travel from site to site
- IT managers who need to visit clients or multiple sites
- Some sales representatives or consultants who need to visit clients or attend meetings
How can I claim a mileage tax rebate?
There are two different ways that can be used for employees wanting to claim tax relief on business motoring expenses. Our expert tax consultants at TaxRefundPro will be able to tell you which method is more profitable to you, according to your own personal circumstances.
The first way is to produce receipts or bank statements, in order to prove to the taxman that you really incurred these expenses yourself. If you are also using your vehicle for personal purposes, you will need to indicate the ratio for business use only i.e. 40% of my vehicle use is business-related (and therefore claimable as tax relief, which in turn means that only 40% of your expenses would be considered for tax relief).
The other and easier method is to produce a detailed mileage log. If required, we can send you a template. Using a mileage log is an ideal way to claim tax relief if you don’t have receipts/bank statements to prove that you have incurred costs in relation to business travels while using your own vehicle for work. Another benefit of using a mileage log is that the mileage allowance you can claim works out to be normally more generous than using receipts.
You should get into the habit of listing your business travels, by doing so it will make things much easier when you come to make a claim (instead of having to remember where and when you travelled a year ago!).
If you have never completed a mileage log, don’t worry, we’ll be happy to advise you on the best way to go about it.
What is the current standard mileage allowance rate?
The standard mileage allowance rate is currently set at 45p per mile for the first 10,000 miles travelled within the same tax year (from April until the following April), and then at 25p for any mile above 10,000.
This amount is designed to compensate employees who use their own vehicle for work purposes, not only for fuel expenses, but for all other costs associated with running a vehicle i.e. Car insurance; Depreciation of the vehicle; MOT & repairs; etc…
If your employer already reimburses you for your business miles, but at a rate under 45p per mile, you may still be able to claim back the difference. For example, if your employer already pays you 25p per mile, you may be able to claim back the additional 20p per mile.
Fill in our online application or talk to one of our tax experts today and see how much tax you could get back for your business mileage…