As a general guideline, if you’re employed (including agency and Umbrella Company) you may be eligible to claim a tax refund on mileage if you travel to temporary worksites. You must use your own vehicles for business-related travel to be eligible. This can include travel to temporary workplaces, client visits, or other work-related journeys.
However, you should consider the following points:
1Eligibility:
To be eligible for mileage expenses, the travel must be necessary for the job, and it should be in the course of employment. Commuting between home and a regular (permanent) place of work is typically not considered eligible for mileage claims.
1Approved Mileage Rates:
HMRC sets approved mileage rates by vehicle type, which represent the amount per mile that you can claim a tax refund upon. These rates are designed to cover fuel, running costs, maintenance, wear and tear as well as depreciation. It’s important to use the correct mileage rates applicable to the type of vehicle used.
| From tax year 2011 to 2012 onwards | First 10,000 business miles in the tax year | Each business mile over 10,000 in the tax year |
| Cars and vans | 45p | 25p |
| Motor cycles | 24p | 24p |
| Bicycles | 20p | 20p |
1Record Keeping:
It is always a good idea to keep detailed records of their business mileage, including the purpose of the journey, the dates, and the number of miles travelled. Most mileage claims for a tax refund are supported by a mileage log.
2Company Car Users:
You are able to claim a tax refund on the cost of fuel or electricity for business related journeys. You will be required to keep records to show the proof of purchase.
3Reimbursed by your employer?:
If your employer fully reimburses you the full amount of the approved mileage rates (detailed above), you are not entitled to claim further tax relief. However, if your employer does NOT fully reimburse the approved mileage rates (detailed above), you are entitled to claim tax relief on the difference. E.g. you drive your car on a business journey and your employer reimburses you for 25p per mile. The Mileage Rate is 45p so you will be entitled to claim tax relief on 20p (the difference between the 45p Mileage Rate and the 25p your employer has already reimbursed).
As tax regulations can change, it’s crucial to stay informed about the latest guidelines from HMRC. Go Tax Refunds is a specialist on such matters and will be happy to help you. 12
