Business mileage is one of the most commonly overlooked tax claims in the UK – which means that many people are owed thousands by HMRC.
If you use your own vehicle for work purposes, you may be entitled to mileage tax relief, even if you didn’t realise it at the time. Millions of workers miss out simply because they never submit a claim.
What counts as business mileage?
While commuting to and from your main workplace doesn’t count, you can usually claim mileage for other forms of work-related travel. This includes things like:
- Visiting clients or customers
- Travelling between job sites
- Attending meetings or training at different locations
How mileage tax relief works
HMRC sets approved mileage rates of:
- 45p per mile for the first 10,000 miles
- 25p per mile for any miles after that
If your employer doesn’t reimburse you, or reimburses you below HMRC rates, you can claim tax back on the difference.
How much could you claim?
For many people, these claims add up quickly. Depending on how often you drive for work and how many years you can backdate rebates can range from £1,000 to £4,000 or more in some cases.
Do you qualify?
In order to qualify for this form of tax relief or rebate, you’ll usually need to:
- Earn over £18,000 per year
- Have paid income tax
- Have used your own vehicle for work purposes
- Keep records of your mileage (even estimated logs can help)
Don’t want the hassle?
If you drive for work, it’s well worth checking as you could be owed money you didn’t even know about.
Of course, for some people, the thought of more paperwork puts them off applying entirely. That’s why a specialist provider can be a great option.
TaxBax are specialists in identifying job-related expense rebates. They make the process quick, accurate, and stress-free. As well as handling all the paperwork and calculations, they will make sure nothing is missed — helping maximise any rebate due.