Does your employer ask you to make work related journeys in your own car or are you self employed and use your car for work? Often you can claim a rebate on petrol/fuel and other related travel expenses. We answer a number of questions below on claiming back tax on petrol expenses:
Can I claim back my petrol/fuel expenses from my employment?
This will depend upon your current circumstance. In the event that you are driving a vehicle supplied by your company then you won’t be able to make a claim. If however you are making use of your own personal vehicle then there’s a good possibility that you could make a claim for this expense.
How much should I be allowed to claim for business mileage for using my own car?
A tax refund on business vehicle usage will be worked out at 40 pence per mile for the first 10,000 miles and 25 pence for any additional miles subsequent to this. You need to remember to deduct any payment which you may have been given from your company for using your own vehicle from this calculation. So for instance in the event you travel 25,000 miles annually, you’d be eligible for petrol/vehicle tax relief of:
(10,000 x £0.40) + (15,000 x £0.25) = £7,750
What happens if my company has compensated me for driving my car?
Any compensation that you receive from your company needs to be deducted from the tax relief calculation. So taking the example above, if your company paid you £2,500 during the tax year to use your own car for work related journeys you would have an adjusted tax rebate of £5,250.
How do I calculate my petrol tax rebate?
Find the amount of your tax relief, using the calculation method above and then multiple it by your marginal rate of tax. If you’re a basic tax rate payer it will be 20%. So from the above example you’ll be eligible for a tax rebate on business mileage of:
£5,250 x 20% =£1,050
Is there a petrol Rebate Form to Claim my Mileage?
If you’re self-employed, you can just include the above any allowable work related expenses in your tax return. Remember to keep a record of the mileage that you have completed. Alternatively you could make an application for a claim with HMRC by submitting a tax return.
If you are self-employed can you claim for train fares to and from clients?
If you are self employed you can claim back the cost of any work related allowable expenses such as travelling between clients.