Few people here in Britain realise that if you use your own vehicle for work - be it a car, van, motorcycle, bicycle even - you can often claim a tax refund for every mile you have travelled.
In this article, we take a look at when, why, and how much tax you could claim back - then look at how to submit a claim if you haven't done so already.
What business travel can I claim tax relief against? Almost any work travel excluding your regular commute to work.
Any mileage you do as part of your job - whether it's visiting clients, delivering goods, or visiting a temporary place of work - is likely to be tax deductible.
I'm on Pay-As-You-Earn (PAYE).
Can I still claim? Absolutely - this form of tax relief is open to all UK taxpayers, regardless of whether you fill out an annual tax return or not.
How do I calculate my refund? Easy peasy.
Start by calculating how many miles you've travelled at work, then multiply this figure by the approved vehicle mileage rate for your type of vehicle (car, van, bike etc).
The rates for each vehicle can be found via the resource box below.
Once you've got the total, subtract all the petrol money (or mileage allowance) that you've been given by your employer.
And the difference between the two? That's the amount you can claim.
Worked example Laura works as a nurse for a home care agency in the East Midlands.
She visits clients in their own homes, using her own car, and did 1,350 miles last year.
As part of her employment contract, she is reimbursed 28p for every mile she does as part of her job.
To work out her refund, Laura takes her business mileage figure and multiplies it by the vehicle rate for cars (1,350 x 40p) = £540 She receives 28p for every mile from her employer (1,350 x 28p) = £378 Armed with this information, Laura can claim the difference between the two figures (£162) as a petrol tax claim.
Assuming she's been doing this type of job for the past few years, she could be looking at somewhere in the region of £975 tax relief if she manages to backdate the claim back to April 2004.
What records do I need to provide in order to claim business mileage tax relief? If you receive petrol money from your employer, a mileage log showing dates, mileage and any money you have been repaid from your employer is usually enough.
Our advice for any current mileage is to keep hold of as much information as you can.
How far back can I claim business mileage tax relief? You can claim back for the last six tax years (i.
e.
back to April 2004).
In this article, we take a look at when, why, and how much tax you could claim back - then look at how to submit a claim if you haven't done so already.
What business travel can I claim tax relief against? Almost any work travel excluding your regular commute to work.
Any mileage you do as part of your job - whether it's visiting clients, delivering goods, or visiting a temporary place of work - is likely to be tax deductible.
I'm on Pay-As-You-Earn (PAYE).
Can I still claim? Absolutely - this form of tax relief is open to all UK taxpayers, regardless of whether you fill out an annual tax return or not.
How do I calculate my refund? Easy peasy.
Start by calculating how many miles you've travelled at work, then multiply this figure by the approved vehicle mileage rate for your type of vehicle (car, van, bike etc).
The rates for each vehicle can be found via the resource box below.
Once you've got the total, subtract all the petrol money (or mileage allowance) that you've been given by your employer.
And the difference between the two? That's the amount you can claim.
Worked example Laura works as a nurse for a home care agency in the East Midlands.
She visits clients in their own homes, using her own car, and did 1,350 miles last year.
As part of her employment contract, she is reimbursed 28p for every mile she does as part of her job.
To work out her refund, Laura takes her business mileage figure and multiplies it by the vehicle rate for cars (1,350 x 40p) = £540 She receives 28p for every mile from her employer (1,350 x 28p) = £378 Armed with this information, Laura can claim the difference between the two figures (£162) as a petrol tax claim.
Assuming she's been doing this type of job for the past few years, she could be looking at somewhere in the region of £975 tax relief if she manages to backdate the claim back to April 2004.
What records do I need to provide in order to claim business mileage tax relief? If you receive petrol money from your employer, a mileage log showing dates, mileage and any money you have been repaid from your employer is usually enough.
Our advice for any current mileage is to keep hold of as much information as you can.
How far back can I claim business mileage tax relief? You can claim back for the last six tax years (i.
e.
back to April 2004).