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Travel & Mileage Business Allowance

Claiming tax refunds for travel can be complicated, from work mileage allowances to DVLA tax refunds. Work travel expenses are a big part of most tax rebate claims, so it’s worth knowing the terrain before you set yours rolling. HMRC won't automatically give you a mileage tax rebate for your travel so you have to claim it back, which can be worth £3,500 on average when you claim with Company Tax Credits. Here’s a quick roadmap for vehicle tax and mileage allowance relief claims with Company Tax Credits.

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Trusted Partners

"Found out I would be eligible for a rebate on travel costs that I didn’t even know about! Was kept well informed of the progress too. Thanks!

Clive Allsopp, SSE Group

Mileage Tax Relief

What is mileage allowance?

When you’re travelling for work, the UK tax laws mean you’re entitled to some tax back for your mileage. As long as your work travel’s essential to your job, and it’s to a temporary workplace, you could be owed some mileage tax relief each year. “Temporary” here just generally means you’re working there for under 24 months on the trot. On the contrary, a daily commute to a permanent workplace won’t earn you a work mileage tax rebate, for example. You can claim 45p per mile for the first 10,000 miles you travel by car or van. After 10,000 miles you can claim 25p per mile after that.

HMRC Mileage

How do I claim my mileage back from HMRC?

Claiming back tax for your work mileage can seem like a lot of stress, but with the right help, it really doesn’t need to be. Every mile you travel to temporary workplaces over the year scores you a little cash back from HMRC. Of course, the taxman won’t automatically know how far you’ve travelled or what it’s cost you. That means you’re going to need to keep a few records.

When you’re ready to make your claim, you can do it yourself using a P87 form from the HMRC website. Doing the DIY route means you'll need to do all the calculations yourself - or better yet, have Company Tax Credits take care of the whole process for you. We can make all the calculations and track down the trickier information for you - even if the employers or workplaces you had no longer exist!

Mileage Tax Refunds

How much are mileage tax refunds worth?

HMRC has set out some Approved Mileage Allowance Payment (AMAP) rates to help cover the travel and running costs of your vehicle. Right now, those rates are:

  • 45p per mile for the first 10,000 miles by car/van, 25p per mile after that.

  • 24p per mile by motorcycle.

  • 20p per mile by bicycle.

You might already be getting something from your employer toward your work travel. Even so, if you’re not getting at least the full amount of mileage tax relief the AMAP rates allow, you can claim back the difference as a mileage claim from HMRC with Company Tax Credits.

HMRC Mileage Checks

Do HMRC check mileage claims?

Absolutely! The taxman expects you to prove you’re owed every penny you’re claiming. That’s why it pays to be precise with the information you provide. Unless you’re a real expert in tax refunds, it’s all too easy to end up missing out on what you’re owed for your mileage.

Worse still, if you claim too much – even accidentally – you can find yourself in a lot of trouble fast. HMRC has a long list of fines and penalties to throw your way if you don’t play fair with the tax rules. That’s another big reason why it’s always worth talking to an expert like Company Tax Credits before you make your claim. We’ve got the knowledge and experience to keep you and your money completely safe.

Need some help?

Wondering if you can claim a tax refund or want us to call you back? Schedule a no-obligation call to find out how much you could receive.

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