With many companies looking to cut costs and no significant tax advantages, company cars are less common than they once were. Employees are now more likely to use their own car for business travel, whether this is on a regular basis or infrequently. However, many of these do not realise that they could be losing out on tax relief by not claiming for their business mileage.
When can mileage be claimed?
If you are using your own car for business reasons in the majority of cases you are eligible for tax relief. You cannot claim for commuting to a permanent place of work, but if you have to travel to different sites or a temporary workplace, you can claim.
What type of jobs can you claim for?
The list of occupations is practically endless. In some jobs you will be travelling more than in others. However, this does not make any difference to whether or not you can claim. As long as your journey meets the eligibility criteria you can put in a claim.
There are a number of healthcare occupations that travel frequently as part of their job. This might include a carer who needs to visit clients’ homes. District nurses often travel to a wide range of non-fixed locations across a wide area. Sometimes they do not have a permanent workplace or use it very rarely, so many of their journeys will be eligible for mileage claims.
Financial and legal services
Accountants, mortgage advisors or solicitors might need to travel to meet their customers, either within their own homes or at their place of work. If they are using their own vehicle to travel to anywhere that is not classed as their main place of work, then they may be able to claim money back for this mileage.
Marketing and sales
Sales people probably travel around the country more than most other occupations and often they do so in their own car. If they are visiting new or potential customers or other offsite locations, such as a conference or outside agency, they may be eligible to claim tax relief for the costs of travel.
Advertising and design agency
Some of those that work within creative agencies will be mainly office-based. However, account managers will often need to spend time visiting clients, partner agencies or attending conferences and exhibitions. Very few of them will be provided with a company car, so if they need to use their own they may wish to investigate putting in a claim for the mileage.
Those working within the IT support industry might work for one company from a central location, but support a network of sites. If the issue cannot be solved remotely there will be a need for them to visit the other site. If they are employed by an outsourced company their clients might be spread across a wide area. In either of these instances, travel in a personal vehicle may be eligible for mileage.
These are only a handful of cases where employees would be eligible to claim back money for the costs of using their own car. Those who work in a number of other industries may also be entitled to this tax relief.
Use our free calculator to find out how much income tax you could be entitled to reclaim.Calculate Tax Rebate