Claiming business mileage

Legacy_user

My company pay me 25p per business mile (I use my own car) and I know I’m allowed to claim 45p for the first 10,000 miles. I have 25,000 business miles recorded from Jan 2017 to Jan 2018 so am I right in thinking 10,000 x 0.20p = £2,000 is what I can claim? Thanks in advance.

BoGoF

I assume you mean a claim to HMRC?

Is so you need to base your claim on the tax year not Jan to Jan.

You should also be aware that you are only going to get tax relief on the amount you claim. So if your claim was for £2000 you would only get a tax refund of 20% or 40% of this depending on your tax rate.

System

So 20% of £2000 is £400, is that the refund I would get?

BoGoF

Correct....

comeandgo

This is assuming you pay tax. You get a tax repayment of £400 if you don’t pay any tax then nothing to repay.

jimbo747

MissSJL wrote: »

So 20% of £2000 is £400, is that the refund I would get?

Yup, just the tax element. Otherwise employers would pay you fack all and tell you to claim the 45p off the Govt.
Don't forget if you had a passenger you can claim an extra 5p

Wayne_O_Mac

jimbo747 wrote: »

Don't forget if you had a passenger you can claim an extra 5p

No you can't.

The employer can pay 5p a mile tax free, but if they don't, the employee can't claim anything.