Not everyone knows that if they use their car, van, motorbike or even their cycle for work they can often claim a tax relief on the mileage. We answer some common questions on this subject. If you do not find the question you are looking for, Send us a message
- What qualifies for business mileage tax relief?
- How do I calculate my business mileage tax relief?
- What records do I need to keep?
- How do I claim my petrol tax relief?
- How far back can I claim petrol tax relief for?
- Any mileage between your home and your place of work.
- Any mileage used for private travel
What qualifies for business mileage tax relief?
If you use your own vehicle you can claim for business mileage on any travel that you do as part of your job. Temporary work places qualify but it does not include:
How do I calculate my business mileage tax relief?
You can calculate your mileage tax relief by multipyling the number of miles you have traveled by the approved mileage rate for your vehicle.
Step By Step
1. Find the total of your business mileage in the tax year
2. Multiply this by your approved vehcicle mileage rate.
3. Add up the mileage allowance given to you by your employer, if any at all.
4. Subtract the amount your employer gave you from the amount calculate in step 2.
Let’s look at an example. During the year you use your car for 850 miles for business. As part of your employment contract your employer pays you 30p per mile . Your business mileage multiplied by your vehicle rate is £340 (850 times 40p). Your employer gives you an allowance of £255 (850 times 30p). Therefore you can make a petrol tax claim for £85 (£340 less £255).
What records do I need to keep?
You should keep as much information as you can including the dates/time that you travelled as well as the journey mileage for each work related journey. Make sure that you keep these records for at least 6 years.
How do I claim my petrol tax relief ?
You can claim your tax relief by completing a tax return. We offer a no obligation service and only charge a fee if you are due a tax rebate on your mileage.
Any more questions? Send us a message, we are happy to help.