Mileage taxWhat is mileage tax?

The UK law means you're entitled to claim some tax back for any mileage you've incurred as long as it is essential for your job. Mileage tax or Mileage Allowance Relief (MAR) makes it possible to claim up to 45p per mile for the first 10,000 miles travelled by car or van. After 10,000 it's 25p per mile.

Mileage expenses refundCan I claim a mileage tax rebate?

• Using your own vehicle and your employer doesn’t refund you the full 45p per mile allowance?
• Using public transport to get to temporary workplaces and your employer isn’t refunding you?

If either of these apply to you, then you can claim a tax refund for your travel costs. You need to keep track of your work mileage to get back everything you’re owed, because every qualifying mile earns you some cash back from HMRC.

Keep in mind that an everyday commute to a regular workplace won’t earn you any tax back from HMRC. To count toward your tax refund, your travel needs to be to a “temporary workplace”. Generally, this just means somewhere you’re working for under 24 months on the trot.

Common examples of temporary workplaces include:

• Builders travelling to sites.
• Armed Forces personnel posted to bases.
• Nurses travelling to local hospitals or clinics.

There are a few little wrinkles in the rules that can trip people up, though. For instance, if your mileage expenses and costs don’t vary much between work locations, you might find HMRC classing your whole local region as a “permanent workplace”.

Always talk to RIFT Tax Refunds if you’re not a 100% sure of your footing. We’ll make sure your mileage claim covers everything you’re owed, without ever running into trouble with the taxman.

Mileage AllowanceMy employer gives me something toward my work mileage expenses. Can I still claim a tax refund?

Even if you’re getting something from your employer for your business mileage, you could still have tax to claim back. If you’re getting less than the AMAP rates say you should, you can claim back the difference as a mileage tax rebate. Or, there may be other tax relief for expenses of employment you can claim for too.

Mileage tax reliefDoes it take a lot of paperwork to make a mileage expenses tax rebate?

The more evidence you have to back up your claim, the better. Don’t worry, though. RIFT can help put all the information together to make sure you never miss out. We can even track down tricky details about employers, travel routes or workplaces that no longer exist!

For a mileage claim specifically it's best to have the following:

• A spreadsheet or some type of log that details the name, address, total mile and dates of all the places you travelled to.
• Something from your employer like a pay-slip or statement confirming any mileage allowance paid to you by them.
• A contract of employment to show that travelling to temporary workplaces is required as part of your job.

Being self-employedHow to claim mileage on your Self-Assessment Tax Return

Claiming mileage isn't just for those employed PAYE. If you're self-employed it's really easy to claim tax back on your mileage when you're submitting you're annual tax return. Here's how:

• Keep a record of your mileage, to and from any meetings, work locations, any errands etc. It's really important you record this accurately to maximise your claim.
• Add up your full business mileage for the year
• Add up any mileage allowance payments (MAP) you may have received throughout the year.
• Take this away from the approved amount you should have received.