Claiming a mileage tax refund from a previous employer

Thousands of pounds are lost each year through unpaid tax rebates and none more-so than when it comes to missed mileage claims. Many people use their cars for business travel purposes and many people could be missing out on money that is rightfully theirs.

Though the reasons behind missed claims will vary, a common misconception is that mileage cannot be paid back from a previous position of employment. This could not be further from the truth. In fact, as long as the right documentation is in place and the request is being made on journeys that happened no longer than four years ago, there are very few reasons why a successful claim cannot be made.

Having the right information

One issue faced by employees when changing jobs is the misplacement of key documentation, such as P45s and P60s. In the midst of the excitement of new employment, mileage claim tax rebates might be the furthest thing from the forefront of the mind. Yet it pays (literally) to be prepared as you never know when the information might be required.

Your P45 outlines income details and tax paid during the financial year and is issued when one period of employment ends. However, your P60 is issued at the end of each tax year and focuses solely on taxable income during the previous 12 months. Many are under the impression that without this vital P60 documents, making a tax rebate claim of any kind is an impossibility.

All is not lost

But this is not the case. If you are entitled to make a mileage claim, you can use something known as a Statement of Earnings as a substitute for a misplaced or lost P60.

Statements of Earnings vary in format from company to company, but the way to obtain one does not really change. They outline money earned and tax paid during the entirety of a staff member’s employment and all employers are legally bound to provide ex-employees with a statement if requested. The best way to do so is to contact the payroll department of the company in question.

Where there’s a claim?

The significant thing is that HMRC will happily accept a Statement of Earnings in place of a P60. Good news for employers as this means that hundreds, even thousands, of hard-workers who though their money was lost forever are still in a position to claim.

Use our free calculator to find out how much income tax you could be entitled to reclaim.

Calculate Tax Rebate