How to Claim a Tax Rebate 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 .

 

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.


224 comments

  1. Lisa says:

    Hi,

    I am self employed and have bought a van through the business. Can I use the mileage method?

  2. marc says:

    hi

    I am a company director, if i have my own car opposed to a company car and have a fuel card.

    i do probably 90% of mileage on company travel BUT dont claim any mileage back from the company. What is the best way of claiming back the difference?

    am i right in thinking calculate the amount of business miles – work out the cost owed and put in the self assessment to counter balance the £5757 for fuel card charge?

  3. Mick says:

    CAn my company charge me business miles on my comp as by car they are charging me 15% on business miles we do?

  4. Mick says:

    I have a company car company have started to charge us on the business miles we do 15% is this allowed.?

  5. Simon says:

    I regularly carry passengers to work also and there is something about 5p per passenger available to claim. Can you clear this up please? Do I include this on the P87?

  6. Simon says:

    How can I get a refund rather than tax relief on my mileage expenses?

  7. Mr R Pearson says:

    I work for an local council as a refuse collector i go to my depot every morning for about 15 minutes then go out on my round I have been told that bacause i am away from my depot for more than 5 hours a day i am entitled to claim a tax rebate is this true ?

  8. anna bond says:

    can i claim the difference if i receive a car allowance, chosen instead of a company car. For example, my employer pays me £30,000 salary plus £5,500 car allowance per annum (gross). I then claim 16p per mile.
    Also, my employer pays me commuting miles too – can I claim against these miles?

  9. James says:

    I am a sales rep and look after a specific area with 200 customers. I live around 20 miles from my area. I have a company car and pay for private mileage each month. My employer is now charging me private fuel from home to my first call and from my last call to home. I work from home and do all of my quoting etc from home. Can my employer do this? I don’t get any rebate on gas elec or broadband either!

  10. James says:

    I’m classed as field based and us emy own car for business purposes. Can I claim miles as business when i got to head office as I’m a field based operative?

  11. Tom says:

    I am employed and travel alot for work, i pay for this myself then give in my travel claim. When i receive my pay i am taxed on my travel by my employer, so i am loosing out and it seems as if i am paying my employers tax on travel. Is this correct or can i claim this back?

  12. stuart cottrill says:

    up to the 14th of Nov the company i was working for paid me 20p a mile for my travelling exs, they have gone into liquidation now and the new one isnt paying me any so i can try and claim all the relief. will i be able to do 2 calculations on my 2012/13 tax return? Thanks

  13. fiona says:

    i am a nurse in the nhs and work in the community covering a huge area. I use my own car can i claim?

  14. maggie says:

    When applying for a backdated mileage allowance, do I fill in the total(this year and backdated years) in box “business travel and subsistence expenses” or do I fill in the backdated amount (previously not claimed) in the “other expenses” box and then detail the backdated years in other information?
    many thanks

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  16. Martin says:

    Hi i work as a area relief officer and use my own car, my question is my company pay me 45p per mile however they only pay me after the 1st 40miles, so if my round trip was 60miles i could only claim for 20miles at 45p per mile, i want to know can i claim back for the 1st 40miles my company do not pay me for?

    Any help would be appreciated as i cannot find any help on this situation thank you.

  17. craig says:

    im newly self employed courier i am paid 65 to 70 pence per mile and lay out alot of money just for diesal alone how much will i get back on diesal as i dont make hardly anything once i pay my tax and diesal costs?

  18. KP says:

    I work for a construction company and pay approx £450 a month for train tickets, this is the cost from home to my place of work. Can I claim against tax on this? I occassionally visit temporary sites during the week which this tickets covers.

  19. james says:

    my company provides me with a fuel card which i get taxed on heavily, it works out roughly £60 a month. this would pay for a tank of fuel which in my car is about 500 miles. i rarely use it for private use as my wife has a car.

    i know travelling to and from work is classed as private miles but i work as a field engineer so i have no choice to how i travel or where i go.

    my work have now said we are no allowed to fill our cars with fuel on a friday or monday, surely this then excludes us from using the fuel benifit for private use and as such the benifit of having the card out weighs the cost of having the card

  20. Jo says:

    hi,i am a carer.i want to claim back petrol money as i don’t get paid anything towards it but i don’t know how many miles i have done in the past 2 years.how can i claim the money back

  21. Sharon says:

    I travel to the office every day in my own car, using my own fuel. Its about 130miles per week on average. Am I eligble to claim anything back at all? Thanks

  22. Sharon says:

    I travel to the office everyday in my own car, using my own fuel money. It is around 120miles per week in total. Am I entitled to claim any money back for anything please?

  23. Priestley says:

    Hi I have new job where I will be using a hire/lease car that is paid out of my own pocket. The company are paying 28p per mile , would I be correct in thinking I could claim the extra 12p per mile for the first 10000?

  24. Elaine says:

    My employers pay 35 per mile, now they want to stop …and lets use use fuel cards , sothey pay to fill up you personal car, what wed use for care work , can they do this .so in fact wed would loose the ware and tare on our cars ?

  25. Elaine matthews says:

    What if a person working for care in the community only 8 to 9.0000 a year, and can the company stop paying35 per miles , they wont to wo rk out what we will use per week and fill each of our own cars , lets use use that, and then the same the next week .???

  26. Steve says:

    I am on a temporary contract (1 year) at work. Can i claim tax back for my travel from my home to place of work?

  27. Craig stephen says:

    Can I travel in company minibus to sites that are a long way from sites.,I have claimed for my own car when closer to home.

  28. Perys Larcombe says:

    I am a carer and am paid £8 an hour, but I have to provide my own car and pay for my own petrol to get to each client. I am only paid whilst I am at the clients address and then when I leave I travel to the next client and during this time I am not paid. Also I am required to work 0700-2200 hours often 7 days a week. If I protest I am told I have to work. but due to the clock stopping and starting I do not know my rights. Can you help?

  29. Frazer says:

    Hi,
    when I started work my employer stated I would get fuel money – he has been highly unreliable with this and insists on keeping it cash in hand! I was naive to begin with in my career, but have sinced wised up. I started keeping a record of every mile I travelled about a year ago, but, “officially”, has never given me travel tax relief. I travel at least 10,000 business miles per year.
    Don’t get me started on his H&S outlook, but I am looking to break off as a sole trader and want to get a little back, if not a nice lump some for what any other employer focused company would of been paying me.
    Can I claim back all these business miles I’ve been left unpaid for, or just the miles I’ve recorded? Do I need to provide a record of date and distance for all travel or can the unrecorded mileage be disputed with my employer to get the complete rebate from day one of my employment?

  30. ben says:

    im a scaffolder, i did just short of 30.000 miles last year im my own car. how much am i entitled to claim back

  31. Geoffrey says:

    Hello.

    I would like to ask if I’am qualify for the mileage allowance, I’ am a support worker and travel 23 miles everyday to my work, can I claim mileage allowance?

    thanks

  32. MARTIN says:

    Hi

    I work for a company who provides support staff for rail replacement bus services. Im employed on a zero hours contract, I have to travel to various different work locations. The company who I work for, doesnt pay for any expenses for my transport. I pay for my own car and petrol.

    Presently I do around 4000 – 4500 miles per year.

    I would like to claim back my mileage.

    Could you please advise me if I would be eligable to claim my fuel mileage back. I have records of the shifts Ive undertaken.

    Thanks for your time, if you need more information let me know.

  33. Adrian says:

    Hello.
    Please can you help. I have filled in a business mileage expenses form and I am owed £2119.00 by the HMRC. My company pays 25p per mile and I am claiming the difference. I have received a letter today saying they have adjusted my tax code so in essence I dont pay as much tax each week to make it up to the figure above.
    I only pay roughly £30.00 a week in tax so it would take a year and a half for me to the £2119.00 and they would basically not have to charge me any tax. Why dont the HMRC just send me a cheque for the money owing, like they used to do? and how would I ever get the money back if I left my job and emmigrated?

  34. jay says:

    i work for a home care company. i filled in a p87 form with hmrc they have put my tax code up for what i claimed for. will i get any money back as i dont earn anough for what they put my tax code to, or is there a different way i could go around it beacause im not getting any money back to what ive spent on petrol thanks

  35. Fraser says:

    Hi I am a teacher on a 1 year contract, working wed,thur,friday do I count as a “temporary worker” and can I claim for my 360miles of travel each week to and from work?

  36. Paul says:

    I recently was offered a job in which I will have a company vehicle, but I will be responsible for paying for gas. Can I deduct fuel expenses on my taxes

  37. alison rotherham says:

    i am a carer working in the community can i claim petrol expenses back! and will it be paid in cash or tax code reduced for next yr

  38. s. dawson. says:

    for 6 years my employer has paid my price of a train ticket in my wages, this was the agreement in my contract. this was from home to office, i then work in the london area. the fare was always in non-taxable.. they now want to move it to taxable extras..is this correct?..i

  39. kirsty says:

    i am a self employed hairdresser and I was wondering how much I would be able to claim back for each mile that I have driven/drive. if you can get back to me that would be appreciated alot. Thank you

  40. Stecolling says:

    Hi, im a teaching assistant in a Primary School in Newcastle and i am traveling 50 miles per day, 250 miles a week. Can i claim?

  41. lisa hall says:

    hi i m a carer in the community and use my own car for work and don t recieve anything towards petrol expenses i worked out i ve done 6000 miles in the tax year at 45 per mile wich works out at 2700 pound how much of this will i actually get

  42. gail farnaby says:

    how do i apply to claim for me having to wash my own work uniform in the food industry

  43. George says:

    hi, I am employed by an agency who ring me and send me to work at different warehouse locations. Is the mileage I do in my car from home to the warehouse classed as business miles as I don’t go to the office on route. Thanks

  44. Tracy says:

    My place of work relocated last April,which adds an extra 20 mile roun trip on to my day, my employer pays me mileage costs for this distance, can you tell me how long i am entitled to this for.

  45. Carrie tough says:

    My husband travels 80 miles a day to get to his job (warehouse). Would he qualify for any help with travel expenses?

  46. Rob says:

    I will be having a “managment car” for work at a cost to lease of £175 per month, because I dont insure or tax this vehicle, I can only claim 15p per mile for business miles through the company I work for, can I claim anything on top of this 15p? as we all know 15p will not actually replace the diesel I use.

  47. Tracey says:

    Do my employers have to refund my milleage costs to me for travelling to Occupational Health sessions out side of working hours due to stress at work.

  48. Jo Holland says:

    I am in the middle of claiming my mileage back, on my payslips it has the mileage divided into non taxable mileage and taxable mileage, am i adding the 2 together to take off the total to work out the difference i can claim? or am i just using one of the figures, and if so do i use the taxable or non taxable figure? Many thanks!!

  49. aaron says:

    I drive a company van and and am employed by the company, but I have to pay fuel costs which can be up to £250 per month. They give me no allowances. I pay for the fuel with a fuel card which is then deducted at the end of the month. I am assuming that they must claim tax relief for it, even though I am paying for it. Is this even legal?

  50. s miller says:

    i have a company car and claim business mileage through my employer. can you claim for a tax rebate on this?

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