A considerable number of individuals travel a great number of miles in the course of their employment. Employees can suffer great costs driving these miles each day and whilst this is a considerable expense to allow individuals to get to work, there is no compensation available. Many employees also travel considerable extra mileage, over and above the distance of their daily commute, such as the travel to a temporary place of work or the distance travelled for business related appointments. Importantly, compensation in the form of tax relief is available on this additional mileage.
The rates are sufficient enough to potentially provide a great financial gain for employees. The rates currently stand at 45p per every mile travelled from 6th April 2011 onwards and 40p per mile previous to that. These rates are capped at 10,000 miles where the rate is reduced to 25p for any additional miles travelled. There is also an additional allowance of 5p per mile for any passengers, making a total allowance of 50p per mile!
The figures above are obviously an estimate and in most cases, employers will provide their staff with an allowance for mileage. However, what many employers may not realise is that if their allowance is set at 15p, they are still entitled to reclaim the difference (i.e. 30p for every mile!). This figure is set by HMRC and is not a decision that must be approved by employers. The rate of 45p is available to all who travel business miles!
HMRC can be intimidating and awkward to deal with, particularly when a taxpayer is trying to claim back money from them (nobody likes paying debts!) and can often deter employees from proceeding with their claim. This is where companies like www.workmileagetaxrebate.co.uk can help. Having formed relations with HMRC they can make the process quick, easy and lucrative for employees who may otherwise not realise, or not believe that they can claim such a great deal of money.
Use our free calculator to find out how much income tax you could be entitled to reclaim.Calculate Tax Rebate