Tax Articles

Tax Rebate Forms

Tax Rebate Calculator

How to Claim a Tax Rebate on Business Mileage

Claim tax back on Business mileage

Hundreds of thousands of people use their own car for work and many do not know that it is often possible to claim tax back on the mileage driven. We answer a number of questions below on this subject:

Am I eligible to claim a tax refund on my business mileage/petrol?
It depends on your situation. If you are using your employer’s car then you will not be able to, but if you are using your own vehicle then there is a good chance that you can.

How much tax can I claim back?
A tax rebate on business mileage is calculated at 40 pence for the first 10,000 miles and 25 pence on any miles after, minus any compensation that you might receive from your employer for using your own car. So for example if you travel 25,000 miles a year, you would be entitled to tax relief of:

(10,000 x £0.40) + (15,000 x £0.25) = £7,750

What if my employer has paid me for using my own car?
Then this amount is then deducted from the tax relief. So in the above example, if you employer has paid you compensation of £2,500, you then have a relief of £5,250.

How do I calculate my tax refund?
Take your tax relief figure, which you have calculated above and then multiple it by your marginal rate of tax. If you are a basic tax rate payer, like most people are, this will be 20%. Therefore in the above example you will be due tax back on business mileage of:

£5,250 x 20% =£1,050

How do I claim my tax refund on mileage?
If you are self employed, you could simply include the above figures in your accounts. Alternatively you can make a claim with the Inland Revenue or apply by submitting a tax return .

Petrol Tax Refunds

apply for a tax rebate

The above is not advise and can not be taken as it. Tax Fix can not be held responsible for anything written. We advise you seek professional help for commencing any tax work yourself.



Bookmark and Share

brian - Monday, May 17th, 2010

i have to travel 50miles round tripe to place of work in my own car can i claim tax on petrol cost

mike - Thursday, May 27th, 2010

Im a trainee brickie and travel to different sites by public transport mainly busses. I get no help from my employer, can i claim my bus fares back ,any help appreciated

TaxFix - Thursday, May 27th, 2010

Mike: Do you travel direct from your home to your place of work or do you go to your work HQ and then go to the site by public transport?

Anonymous - Tuesday, June 1st, 2010

I am a carer and work on the community looking after the elderly and use my own car for work but dont recieve any petrol allowances at all can i claim anything back?

TaxFix - Tuesday, June 1st, 2010

Anonymous: Yes, you can claim up to 40 pence per mile

Anonymous - Friday, June 4th, 2010

I am commencing new job where I have been given car allowance as monthly payment in addition to salary. I am unsure what the correct mileage recharge should be. Company tells me it is HRMC rate as maximum. If this is correct do I deduct the annual allowance and the 16p per mile to calculate tax saving?

Mark Dryden - Sunday, June 6th, 2010

I am having a lot of trouble with the new law which states that the p87 claim doesn’t necessarily mean that all tax on unpaid mileage is refunded. This is due to the “triangular rules” which involves temporary workplace. As a peripatetic tutor my employer has decided I can no longer claim for tax relief on my unclaimed mileage as I technically have a temporary workplace. I actually have a base from which I claim mileage. My question is: How come a base is a temporary workplace and why can’t I claim tax relief on the mileage from home to base and vice versa?

Regards

Mark Dryden

TaxFix - Monday, June 7th, 2010

Anonymous: Are you given a company car allowance or are you being given a mileage allowance? Normally if you are given a company car allowance, this will be reflected in a change to your tax code. If you are using your car for work and your employer is giving you a mileage allowance, you may be able to claim more. This article may be helpful.

Craig - Tuesday, June 8th, 2010

I am required to travel 40 miles between sites and my employers will not pay expenses unless I am insured for business use. is this reasonable and in any event can i reclaim the mileage through a tax rebate

TaxFix - Wednesday, June 9th, 2010

Craig: Yes, you can claim a tax allowance of 40 pence for the first 10,000 miles and 25 pence for each mile after 10,000 per tax year. If you need help claiming your tax allowance you can apply on your tax return.

Ian - Thursday, June 10th, 2010

My employer pays me 40p per mile for using my car for work HOWEVER I lose 8 miles per day as it is my ‘home to base’ deduction – which they enforce every day even if I go nowhere near the base…. Can I claim for that loss? Also, am I entitled to anything on the mileage I do get? Finally, will my tax code be altered meaning any future mileage will be accounted for in my tax rate?!

TaxFix - Thursday, June 10th, 2010

Ian: Unfortunately 40 pence is the maximum your can claim for mileage allowance from the Inland Revenue. If your employer already pays you 40 pence, there will be not extra to claim.

Anon - Thursday, June 10th, 2010

As I’m self emloyed I know I can claim back petrol costs for businees use. How do I calaculate a reasonable % for personal/business use?

Ian - Thursday, June 10th, 2010

Can I claim for the 8 miles per day which they don’t pay me? That being to a ‘base’ that I never go to because it doesn’t exist!

TaxFix - Saturday, June 12th, 2010

Anon: You can claim 40 pence per mile for the first 10,000 miles and 25 pence for any miles after that. You can see the rates here.

TaxFix - Saturday, June 12th, 2010

Ian: You can claim for business mileage that isn’t between your home and place of work.

Lillian - Saturday, June 19th, 2010

I am a carer but i have to buy a bus pass every month to travel to my clients, can i claim this back through tax because I don’t receive anything from my boss, he refueses to pay it.

Anonymous - Friday, July 2nd, 2010

Most of these comments should be ignored.

Claiming mileage as a business expense requires certain conditions to be met.

Most of the time just travelling to your place of work using you own vehicle will NOT entitle you to tax relief.

I advise that you should seek advise from your accountants – not from this site

TaxFix - Friday, July 2nd, 2010

Anonymous: I agree. In replies to the comments we have mentioned as you note, that ‘travelling to your place of work using you own vehicle will NOT entitle you to tax relief.’ If we have said differently please let us know.

Adam Rollins - Monday, July 5th, 2010

Part of the issue about claiming tax is the ability to account for business and private mileage. Look at for a fully on-line system that will sort this out. Very useful for companies to adopt. Saves them paying full Authorised Mileage Rate (AMR) for drivers’ own cars, or having to pay Authorised Fuel Rates (AFR) for company vehicle fuel. Also helps sort out the Benefit in Kind tax issues on fuel.

sheila  - Thursday, July 8th, 2010

i am a volunteer driver and have to include business insurance on my insurance policy, like to know can i claim tax back on this and i get for mileage can i claim tax for petrol usage.

ANON - Wednesday, July 14th, 2010

I’ve recently started work as a carer driving to peoples’ homes and my employer gives 18p per mile allowance, excluding the first and last 10 miles per day. I have spent hundreds of pounds already on petrol. Can i claim?

Anonymous - Saturday, July 17th, 2010

I’m a care worker and have to go on alot of training so the company I work for pay 35p a mile this is then paid with my wages which I’m then taxed on when I have already paid tax on my fuel so I end up paying more tax and bring home less monie also if you use public transport you can claim a refund but again they tax on this I just wanted to know if this is right .. Thanks anybody angela :)

Claim Your Tax Rebate

 


Bookmark and Share

Syndicate this article