We are often asked if you can claim tax relief on repairs or mileage for car travel. This article will highlight some of the main points, if you have any further questions please leave them in the comments below.
Not all travel counts as business mileage and the Inland Revenue are quite strict as to what is allowed. If you are travleling from your home to your place of work (or vice versa), this will not be accepted as business mileage. Any other mileage (that is not for private use) can be claimed
For cars and vans the mileage relief is 40 pence for the first 10,000 miles and 25 pence for any miles after this amount. If you use a motorcycle or bicycle for your business mileage you can also claim a mileage allowance of 24 pence and 20 pence for all miles travelled respectively.
The total amount of your allowance is deemed to cover petrol and wear and tear on the vehicle you are using. Often employers will pay you some money for the of miles that you travel for work. This amount would need to be deducted from the tax relief that you are claiming from the Inland Revenue.
Keeping Records for Business Mileage
It is important that you keep as accurate records as you can about the mileage that you have travelled on business. The Inland Revenue may ask to see your records to prove the amount of miles travelled. Information about your mileage that you should record include:
- Number of miles travelled
- Details of the journey
Remember to keep these records safe for at least 6 years so that you have proof of the allowances that you are claiming for. If you have any further questions, please do not hesitate to ask in the comments below.