Field engineers often find they clock up the miles pretty quickly. This might not be given a second thought for those using a company vehicle, but for an engineer who has had to use their own vehicle for a business related journey, it can soon become a very big deal.
If you have used your own vehicle for business travel at any point during the last four years (tax years) and depending on whether or not your employer reimbursed you for that trip, the amount will vary.
How Far Back Can Be Claimed?
Up to four tax years’ tax relief can be claimed, at a rate of up to 45 pence per mile. It isn’t necessary that you have used your own vehicle for all of that time. Even a single journey would count, although the claim might not be very large!
For those who work for themselves, things need not be any more complicated. Claiming tax relief on business miles is permissible, and often adds up to a considerable rebate. Tax relief is only paid where sufficient Income Tax has been paid previously. Put simply, to make a claim of £100, at least £100 must have been paid in income tax in the same year.
Employed or self-employed, always keep an accurate mileage log and details of payments received to be sure of what you are entitled to. You may not be asked to provide detailed mileage logs at the claim stage, or even at all, although HMRC may request to see these records at a later date, so it is important that accurate and sufficiently detailed records are held and that any election you may can be fully substantiated.
The government’s statutory mileage rates for private cars and vans state that 45p may be paid for the first 10,000 miles each year, and 25p for every mile after that.
Fred travelled 8,000 miles last year on business, and 12,000 the year before. He has not been paid any mileage.
This year: 8,000 x 45p = £3,600
Last year: 10,000 x 45p + 2,000 x 25p = £5,000
Joe travelled 15,000 miles, although his employer already paid him 25p per mile.
10,000 x 20p + 5,000 x 0p = £2,000
Use our free calculator to find out how much income tax you could be entitled to reclaim.Calculate Tax Rebate