HMRC mileage relief claims

Work Mileage Tax RebateWhat is work mileage tax relief?

When you're using your own care for work travel, mileage tax relief is a way of bringing down your yearly tax bill.  Depending on your employer, you might already be getting a mileage allowance to help with the costs.  If you're not, or if you're getting less than the AMAP rates, you can claim some tax relief from HMRC as a work mileage tax rebate.

The mileage rebate rules for company cars are a bit different, so you might need to take a look at those as well. Either way, if you’re shelling out for your essential work travel you should be claiming some tax relief from HMRC.

HMRC Business Mileage ClaimHow do HMRC mileage tax rebates work?

At RIFT, we’ve got teams of experts to make sure you don’t miss out on the refunds you’re owed. We’ll keep you in the loop throughout the process through your free MyRIFT account. Wherever you are in the world, you can ask questions, update details and check your claim’s progress at any time. Here’s how a work mileage tax rebate works:

• HMRC allows specific amounts of tax relief for using your own car for travel to temporary workplaces. These are called the Approved Mileage Allowance Payment (AMAP) rates.
• If you aren’t getting the full AMAP rates back from your employer, you can claim the difference from HMRC instead as a work mileage tax rebate.
• If you’re claiming for up to £2,500 of expenses over a year, you can use a P87 form to make your claim. If you’re claiming more, you’ll need to file a Self Assessment tax return to get your refund. Either way, RIFT can handle the paperwork for you and make sure you never miss out on anything you’re owed.

The amount of refund cash going unclaimed each year is incredible – not far off £200 million! What’s more, there’s a hard deadline for getting your money back. If you haven’t made your claim by April after 4-years, you’re out of luck forever.

HMRC Mileage ClaimCan you claim tax back for driving to work?

Things get complicated quickly when you claim mileage for work, and not all your travel necessarily counts. To qualify for a work mileage tax rebate, you need to be:

• Making your own way to temporary workplaces (where you work for less than 24 months).
• Travelling as an essential part of the job.

When you claim business mileage for driving to work, a standard commute to a permanent workplace won’t earn you any tax relief. It’s not just a question of getting back your costs, either. What you’re actually claiming mileage relief on is the tax you’ve paid on your travel expenses. That could mean using your own car for work journeys, travelling by public transport or both. If you’re spending your own cash on this kind of travel, you can claim a work mileage tax rebate.

Getting confused over what you’re owed is a big reason why people claim too little or too much tax back. That can mean missing out badly, or even getting on the wrong side of HMRC.

MAR and MAPWhat's the difference between MAR and MAP?

• MAR or Mileage Allowance Relief is provided by HMRC in the form of tax deductions, this isn't something your employer pays.
• MAP or Mileage Allowance Payments is paid via your employer.

Company car claimsCan I claim business mileage on a company car?

Whether or not you can claim for your company car’s business mileage depends on your situation:

• If you’re paying for fuel costs yourself, you can claim back a fixed amount for your mileage. This is set by HMRC and called the Advisory Fuel Rate.
• If you’re getting reimbursed, but getting less than the Advisory Fuel Rate, you can claim back the difference from HMRC as a tax refund.
• If your employer pays for all of the fuel you use, or gives you more than the Advisory Fuel Rate for your company car, you’ll be taxed on that as a “benefit-in-kind”.

Employer responsibilitiesDo employers have to pay company car travel expenses in the UK?

Employers don’t have to pay you anything for your company car business mileage, but many still decide to do it. If you aren’t getting back the full Advisory Fuel Rate from your boss, you can make a tax refund claim to make up the difference. On the other hand, if you’re getting back more than the Advisory Fuel Rate set for your company car, you can quickly find yourself owing some tax.