More miles than your average commute?

Travel expenses are a cost which many individuals face over their working lives and day to day, being one of the most significant and widespread people face. Certainly in a business sense, the cost of fuel comes as an expense which is difficult to avoid as there are few or no alternatives. For most employees, the expense is lessened or eliminated by allowances, usually of around 20p to 50p per mile, by their employers.

Employers are under no obligation to pay an allowance for business miles, although most are reasonable and contribute towards their employees cost. Many pay the statutory rate of 45p to their employees as an allowance, although others choose to pay different sums. If the allowance falls below 45p, however, this is a taxable benefit which can be reclaimed.

Importantly, business miles are only the ones which are travelled over and above the daily commute to work. The tax that can be reclaimed is, at basic rate tax, 20% multiplied by the difference between the 45p and the contractually agreed allowance. For instance, if the contractually agreed allowance was 30p then the allowance claimable would by 3p per mile (20% of 15p). HMRC allows for claims to be made up to 10,000 miles per year, at which point the 45p drops to 25p. At this point, the tax relief is often lost as employer contributions will usually at least cover and sometimes exceed this amount, although in certain cases the figure may drop to 25p or drop, lower to 20p for instance. Tax relief is still available at this level, although using the 10p example that makes a potential refund of just 1p per mile. Again, this is small on its own but assuming (as this is above 10,000 annual miles) the member staff travels extensive business miles. A potential business mileage refund could yet run into hundreds of pounds.

If you think that you may be entitled to make a claim, then do not hesitate to contact We are a website devoted to giving the public information on tax returns and providing a swift, secure and easy way for you to gain the compensation you deserve. If there cannot be a claim made, then there is no charge. If you have been allowed anything less than 45p per mile by your employer then you will entitled to at least something!

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

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