Mileage Claim Tips

Throughout many individuals employment they travel a considerable amount of miles to and from work. Unfortunately for employees, individuals are not given a mileage rate allowance for these journeys. However there are numerous occasions when employees travel additional miles on top of their journeys to work. These additional journeys can lead to very high costs for the employee if they are not covered substantially by their company. Examples of these may be travelling to meet clients, travelling to business meetings or business related appointments. It is important to note that individuals are entitled to compensation on these extra miles they travel.

HMRC statutory mileage allowance which as of 6th April 2011 is 45p a mile whereas before the 6th April it was 45p and lasts up to 10,000 miles and then drops to 25p for any additional miles driven. There is also an additional 5p for every mile if a passenger is on board.

If an employee was paid 25p for business miles then they would be entitled to claim tax relief back on the difference between what they were paid for their business miles and the mileage allowance at a tax rate of 20% so the difference between 25p and 45p which is 20p and claim a tax relief of 4p every mile which could be claimed for up to a total of 10,000 miles.

In order to be able to claim tax refunds back from HMRC then they expect you to keep a records of the miles travelled this could be in the form of notes taken in a diary showing places travelled or a timesheet. However this is not a necessity when attempting to get money back as on most occasions negotiations can be entered into which are often successful.

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

Calculate Tax Rebate

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