Claiming mileage can be confusing and knowing how to claim back what you are entitled to is important, to make sure you do not claim too much or too little. Before you make a mileage claim you must decide whether your mileage meets set criteria called qualifying travel expenses…
What are qualifying travel expenses?
Travel expenses are costs incurred by a worker during travelling for the purpose of their job. To be qualifying travel expenses they must meet HMRC’s rules for tax relief. HMRC will only permit tax relief for expenses incurred when travelling to a temporary work place. A place of work is classed as temporary by HMRC if it is attended for less than two years, or for a period of time expected to be less than two years.
A temporary workplace could be a client’s address if you are a travelling care worker, a district nurse or a sales person. Temporary workplaces are also common for those in construction industries who have to travel to various different sites for their job.
Travel expenses can include mileage travelling in your own vehicle to a temporary workplace, use of public transport to attend a temporary workplace and in certain cases accommodation, food and other costs incurred whilst working at a temporary workplace.
Claiming Mileage – Who Can Claim?
Anyone who uses their own vehicle to travel to a temporary workplace and receives no mileage allowance from their employer, or receives less mileage allowance than the rates set by HMRC, is eligible to claim a tax rebate on their business mileage. The amount received as a rebate will depend upon how much mileage allowance, if any, your employer pays you and if it is taxed or untaxed.
Claiming Mileage – How Much Can I Claim?
Since 6th April 2011 HMRC has permitted a mileage allowance rate of .45p per mile for the first 10000 miles and 25p per mile thereafter.If you are paid no mileage allowance or an allowance at a lower rate than HMRC permit then you can claim a tax rebate on the difference.
It is possible to make a mileage claim for up to four years previous. Prior to April 2011 HMRC’s permitted mileage allowance rate was 40p per mile for the first 10000 miles and 25p per mile thereafter. You can use Tax Banana’s free mileage tax relief calculator to find out how much you could be owed.
Claiming Mileage – What Do I Need?
It is beneficial to your claim if you provide records of journeys made when applying for a business mileage tax rebate. Timesheets showing locations visited and mileage incurred as well as payslips showing any travel allowance paid by your employer would be suitable evidence to provide to HMRC to support your refund claim. Any tax refund due on other travel expenses will also require evidence such as accommodation and meal receipts.
It may be possible to make a successful travel expense or business mileage tax rebate claim without records but it may be more complicated and time consuming.