Claiming mileage

Paddy99

I used to do this in the past but not done if for many years. I understand it's still possible to claim back mileage expenses up to the rate of 45p from HMRC. Is this done annually and I can't remember if it's refunded in the form of a cheque or your tax code is amended. Also is this possible if a car is available it you choose to use your own or if the company pays a small contribution.

Alice_Holt

Probably better to post this on the Cutting Tax forum rather than the Benefits board.

FWIW - My understanding is that it is still possible to claim tax relief on the difference between your employers mileage allowance rate (if less than 45p per mile) and the 45p HMRC rate from HMRC, providing you are using your personal car for business use.
You apply to HMRC on Form P87. You will need to keep detailed records

If you google a few key words I'm sure you will find definitive information to answer your question.
I assume you are not self-employed?

Dazed_and_confused

You cannot claim mileage from HMRC.

And you cannot claim the difference between 45p and whatever your employer (assuming employed) pays you from HMRC.

You may be able to claim tax relief on the mileage (or difference) but that is significantly different in terms of the money involved.

For example

5,000 qualifying business miles
Expenses claimed 5,000 x 45p = £2,250
Less reimbursed by employer £1,500
Allowable expense £750

This £750 will save you most people around £150 (basic rate payer) or £300 (higher rate payer) but it could save nothing if on low income or as much as £345 if you have very high income and are Scottish resident for tax purposes.