Claiming back mileage difference.

alex_163163

Hi all,
Quick question relating to claiming back mileage/ tax on mileage......
I get paid a car allowance by my employer. This doesn’t include mileage/ petrol. I claim any business mileage via expenses at 12p per mile.
A colleague recently told me that I can claim back the difference up to 45p per mile from HMRC at the end of the tax year.
But what I’ve found online is that I can claim the TAX back on the difference between 12p and 45p per mile.
Can anyone confirm if it’s the tax on the difference, or the actual difference amount please?

BoGoF

You get tax relief on the difference. So depending on your tax rate 20% or 40% (assuming not in Scotland)

alex_163163

Thank you, that’s what I was reading online, but just wanted to check!
No not Scotland.

nick74

It does seem to be a common misunderstanding that HMRC make up the difference between the expenses employers pay and 45p per mile. Logically if that were the case every employer would pay zero per mile and let the government cover their employees' travelling expenses!

alex_163163

Yes that is what I thought! Glad to have the clarification, and I can inform my colleague too!