Claiming Travel Expenses In The Construction Industry​

Okay, here’s where the rubber hits the road. The amount of tax you can claim back for your work travel depends on the rates and thresholds set out in the HMRC rulebook. They’re called Approved Mileage Allowance Payments (AMAP) and as of the 2019/20 tax year they look like this:

• 45p per mile for the first 10,000 miles you travel by car or van, then 25p per mile after that.
• 24p per mile travelled on a motorcycle.
• 20p per mile for travel by bicycle.

You won’t get taxed on your AMAP payments, so travelling 15,000 miles for work in a single tax year nets you a tax-free payment of up to £5,750. That breaks down as £4,500 for the first 10,000 miles you travelled (10,000 miles x 45p), plus £1,250 for the rest (5,000 miles x 25p). Obviously, this assumes you travelled in your own car or van. The AMAP rates for motorbikes and bicycles are lower, but they're still worth claiming.

Another point to keep in mind is that you have to be footing the bills yourself to claim - or part of them, at least. If you’re already getting at least as much as the AMAP rates say you should from your employer, you can’t claim tax back. However, if you’re getting less than that you can claim back the difference from HMRC. Also, if your employer's paying you a higher rate, then it'll be considered a "benefit". That means you'll owe some tax on the extra. It doesn’t matter how many vehicles you’re using for work. The AMAP rates don't exclusively apply to any one vehicle. The distance you travel in each of your vehicles is simply lumped in together to work out your payments.

On the other hand, if you're on the road for more than one job, then each is usually considered separately. That means you can claim the full AMAP rates for each. The jobs really do have to be separate, though. Working for associated companies or employers probably won't count, and you’ll get heat from the taxman if you try to bend the rules even slightly – so don’t do it!

If you’re taking other passengers to work with you in your car or van, you can claim an extra 5p a mile per passenger. The travel’s obviously got to be work-related for them as well, though, so don’t just load up the kids and family dog and expect a pay-out from the taxman.

The AMAP rates and thresholds are generally used when you’re doing your work travel under your own steam. However, that doesn’t mean you’re out of luck if you hop the bus to your temporary workplaces. Even coughing up for public transport can get you a tax refund from HMRC. Instead of keeping track of the miles you’ve travelled, though, you’ll need to keep records of the money you’ve spent on tickets and so on. The taxman will always expect you to back up your claims with evidence of what you’ve spent, so don’t lose your paperwork.

Once again, if your employer’s reimbursing you for your public transport costs, you can’t claim any tax back for them. If you’re not getting back as much as you’re spending, though, you might still have a tax rebate claim.

 If your boss stumps up for a company car for you, you can often still claim a tax refund for your work travel. In some cases, though, your employer may also provide you with free fuel for private use. As always, you can’t claim a tax refund for any expenses you’re not paying yourself, or for anything that’s not necessary for work.

When you're using a company car, the mileage rates (in this case called Advisory Fuel Rates) are different. That's because you're only getting reimbursed for the fuel you're burning on your business travel. You aren't, for instance, getting anything toward maintenance costs, which are figured into the AMAP rates.

As of the 1st of September 2019, the company mileage rates for petrol and LPG vehicles are:

For diesel vehicles, you're looking at:

Hybrid cards count as either diesel or petrol, as appropriate and there's a separate Advisory Electricity rate of 4p er mile for electric vehicles.

When your job has you trekking overseas to temporary workplaces, your tax rebates can get complicated. You might be using a bunch of different types of transport (personal vehicles, trains - maybe even a helicopter or two) and stacking up a load of additional costs along the way. The best advice is always to keep hold of your records, from tickets bought and miles driven through to overnight hotel stays and food bills. These scraps of paper are your ammunition when you go up against the taxman to claim your refund.

Remember - HMRC will never try to cheat you. That’s not how this works. They will, however, insist that you prove every penny you’re owed. Get professional help if you’re having trouble, and never settle for less than you’re due.