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Tax Refund - Business Mileage & Travel Expenses
Depending on the kind of work you do, you may be able to claim tax relief if you use your own vehicle for work purposes. This is sometimes called business mileage. Tax relief for business mileage is available for a number of professions, including tradespeople, sales people and workers in the health industry.
To find out more about business mileage please follow the links below:
- Business mileage is the distance you travel in your own vehicle when you are doing your job. This may include travelling to a single temporary workplace, or to various different places.
- You cannot claim business mileage for ordinary commuting to a single permanent place of work.
- You can backdate your claim for business mileage for up to four tax years.
- When calculating eligibility for tax relief, HMRC usually define a temporary workplace as somewhere where you work for a single period of 2 years or less, or which is expected to last less than 2 years. This may be a construction site, for example.
- If you are eligible for business mileage tax relief, you may also be able to claim for travel between different work sites (such as different clinics or schools) or travel between clients’ homes or places of work.
- The business mileage rate is set by HMRC. In 2011-12 tax year this is 0.45p per mile for the first 10,000 miles and 0.25p per mile thereafter. You can backdate a claim for business mileage for up to four tax years, although the rate set is different for previous years. For example, for the tax year 2010-11 the business mileage rate is 0.40p per mile for the first 10,000 miles and 0.25p per mile thereafter.
- If you receive an allowance for mileage from your employer, but this allowance is less than the business mileage rate set by HMRC, you can make a business mileage claim for the difference. If the mileage rate paid by your employer is taxed, you can also make a business mileage tax rebate claim for this.
- Full details of locations visited and records of mileage travelled should be provided in support of a business mileage claim. However, if you did not keep these records you may still be awarded tax relief but further information will need to be provided.
If you are employed at a temporary workplace, you can usually claim tax relief for travel expenses for using public transport to travel to work, and for certain costs of living including accommodation and food. You may also be eligible for tax relief for equipment, tools and specialist clothing that you buy for work purposes, if you have paid for these yourself.
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