HMRC Mileage Claims

A lot of people don't realise you can claim tax relief for expenses of employment such as mileage tax relief for using your own car for work. The same goes for public transport. Either way, unless you’re getting the full approved business mileage allowance for your work travel from your employer, you’re probably owed a work mileage tax rebate from HMRC.

RIFT Tax Refunds is the UK’s leading expert on tackling the taxman, and our free business mileage expenses claim calculator will give you an instant estimate of what you’re owed.

HMRC Mileage

How do I claim my mileage back?

Claiming business mileage is your legal right when you’re spending your own money travelling to temporary workplaces. What you’re actually claiming back is the tax you’ve paid on your travel expenses throughout the year. That generally means you’ll get back a 20% chunk of what you’ve spent on qualifying travel.

You claim back tax relief for expenses of employment such as business mileage as part of a tax rebate claim. It means keeping track of your mileage expenses and how far you travel for work. The better your records the more you’ll get back. Don’t forget to include other expenses like food and accommodation bills when you’re on the road.

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HMRC Mileage Claim

Can you claim tax back for driving to work?

If you’re wondering when you can claim for your business mileage to and from work, you’re not alone. Things get complicated quickly when you claim mileage for work, and not all your travel necessarily counts. To qualify for a work mileage tax rebate, you need to be:

  • Making your own way to temporary workplaces (where you work for less than 24 months).
  • Travelling as an essential part of the job.

When you claim business mileage for driving to work, a standard commute to a permanent workplace won’t earn you any tax relief. It’s not just a question of getting back your costs, either. What you’re actually claiming mileage relief on is the tax you’ve paid on your travel expenses. That could mean using your own car for work journeys, travelling by public transport or both. If you’re spending your own cash on this kind of travel, you can claim a work mileage tax rebate.

Getting confused over what you’re owed is a big reason why people claim too little or too much tax back. That can mean missing out badly, or even getting on the wrong side of HMRC.

HMRC Business Mileage Claim

How do HMRC mileage tax rebates work?

At RIFT, we’ve got teams of experts to make sure you don’t miss out on the refunds you’re owed. We’ll keep you in the loop throughout the process through your free MyRIFT account. Wherever you are in the world, you can ask questions, update details and check your claim’s progress at any time. Here’s how a work mileage tax rebate works:

  • HMRC allows specific amounts of tax relief for using your own car for travel to temporary workplaces. These are called the Approved Mileage Allowance Payment (AMAP) rates.
  • If you aren’t getting the full AMAP rates back from your employer, you can claim the difference from HMRC instead as a work mileage tax rebate.
  • If you’re claiming for up to £2,500 of expenses over a year, you can use a P87 form to make your claim. If you’re claiming more, you’ll need to file a Self Assessment tax return to get your refund. Either way, RIFT can handle the paperwork for you and make sure you never miss out on anything you’re owed.

The amount of refund cash going unclaimed each year is incredible – not far off £200 million! What’s more, there’s a hard deadline for getting your money back. If you haven’t made your claim by April after 4-years, you’re out of luck forever.

Work Mileage Tax Rebate

What is work mileage relief?

When you're using your own care for work travel, mileage tax relief is a way of bringing down your yearly tax bill.  Depending on your employer, you might already be getting a mileage allowance to help with the costs.  If you're not, or if you're getting less than the AMAP rates, you can claim some tax relief from HMRC as a work mileage tax rebate.

The mileage rebate rules for company cars are a bit different, so you might need to take a look at those as well. Either way, if you’re shelling out for your essential work travel you should be claiming some tax relief from HMRC.

Claiming Mileage

How much can I claim for mileage relief?

The current rates set by HMRC for mileage relief are:

  • 45p per mile for the first 10,000 miles of work travel in a year.
  • 25p per mile for any additional travel after that.

These rates are for cars and vans. If you travel by motorcycle, your mileage rate is a flat 24p per mile you travel. Bicycle users can claim 20p per mile. You can read more about this on our Approved Mileage Allowance Payments page. 

Remember to try our mileage tax relief calculator for a quick estimate of how much you could claim back from HMRC.

Mileage tax rebate

What records do I need to keep to claim a mileage tax rebate?

Claiming mileage relief for using your own car for work means keeping a few records. Even so, the paperwork needed for claiming your mileage tax rebate isn’t difficult to put together.

The first and most important thing you’ll need is a full list of all your work travel. It’s worth being thorough about this, with dates, distances and destinations. Don’t stress out about it, though. We can always help fill in any gaps for you.

It’s worth remembering that you can still claim tax refunds for your travel if you used public transport during the year. Train fares, taxi rides and bus tickets can all count toward your work mileage tax rebate claim. Keeping receipts when you’re paying for these out of your own pocket is a great start. Again, though, we can help get your records up to scratch if there are gaps to fill.

Specialist teams

Can you still claim mileage tax relief for complex journeys?

Even if you work abroad, you still pay tax in the UK as long as you’re a “UK tax resident”. Even so, multi-leg work journeys and international travel can still earn you tax rebates from HMRC each year. This kind of travel can make it trickier to claim mileage relief to and from work, and not every step you took along the way will necessarily count toward your rebate. Remember, claiming too much tax relief is worse than claiming none at all, since it can get you in hot water with the taxman fast.

Of course, you don’t need to be working abroad to find yourself dealing with complicated travel. For instance, let’s suppose you’re claiming a health care worker tax rebate. You travel to a number of hospitals over the same area, so you might expect them all to count as temporary. However, if your mileage and costs don’t vary much between locations, HMRC might decide that the entire region is your permanent workplace. That means no work mileage tax rebate at all!

Don’t worry, though. RIFT has teams that specialise in complex travel claims, protecting you and your money from HMRC. It only takes a few moments to check what you could claim, so use our tax refund calculator and get in touch to set things moving.

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Company Car

Can I claim back travel expenses for my company car?

When you drive a company car, claiming back tax is a little different from when you use your own vehicle for work. If you’re paying some of the fuel costs yourself, though, you could have a tax refund claim.

A lot depends on the arrangements you have with your employer. For example, you might be paying for all the fuel yourself, getting reimbursed for some of your costs or getting all your fuel for free. You might even be getting free fuel when you’re using the company car for personal use. What kind of refund you’re owed varies with the type of company car you use and how the fuel is paid for.

Company car claims

Can I claim business mileage on a company car?

Whether or not you can claim for your company car’s business mileage depends on your situation:

  • If you’re coughing up all the fuel costs yourself, you can claim back a fixed amount for your mileage. This is set by HMRC and called the Advisory Fuel Rate.
  • If you’re getting reimbursed, but getting less than the Advisory Fuel Rate, you can claim back the difference from HMRC as a tax refund.
  • If your employer pays for all of the fuel you use, or gives you more than the Advisory Fuel Rate for your company car, you’ll be taxed on that as a “benefit-in-kind”.

Company car tax back

Do companies have to pay 45p per mile for company cars?

The AMAP rates (45p per mile for the first 10,000 miles then 25p per mile afterwards) are only used when you drive your own vehicle for work. Company cars use Advisory Fuel Rates instead.

Advisory Fuel Rates depend on the kind of company vehicle you drive. They’re worked out using the following tables:

Petrol

Engine size (cc)

Mean MPG

Applied MPG

Fuel price (per litre)

Fuel price (per gallon)

Rate per mile

Advisory fuel rate

Up to 1400

57.0

52.7

112.3 pence

510.7 pence

9.7 pence

10 pence

1401 to 2000

48.2

44.6

112.3 pence

510.7 pence

11.5 pence

11 pence

Over 2000

32.7

30.3

112.3 pence

510.7 pence

16.9 pence

17 pence

Diesel

Engine size (cc)

Mean MPG

Applied MPG

Fuel price (per litre)

Fuel price (per gallon)

Rate per mile

Advisory fuel rate

Up to 1600

71.3

65.9

117.1 pence

532.2 pence

8.1 pence

8 pence

1601 to 2000

57.9

53.4

117.1 pence

532.2 pence

10.0 pence

10 pence

Over 2000

49.8

45.8

117.1 pence

532.2 pence

11.6 pence

12 pence

LPG

Engine size (cc)

Mean MPG

Applied MPG

Fuel price (per litre)

Fuel price (per gallon)

Rate per mile

Advisory fuel rate

Up to 1400

45.6

42.2

65.0 pence

295.5 pence

7.0 pence

7 pence

1401 to 2000

38.5

35.7

65.0 pence

295.5 pence

8.3 pence

8 pence

Over 2000

26.2

24.2

65.0 pence

295.5 pence

12.2 pence

12 pence

Fully electric vehicles have an Advisory Fuel Rate of 4p per mile, while hybrids use either the petrol or diesel rate.

Employer responsibilities

Do employers have to pay company car travel expenses in the UK?

Employers don’t have to pay you anything for your company car business mileage, but many still decide to do it. If you aren’t getting back the full Advisory Fuel Rate from your boss, you can make a tax refund claim to make up the difference. On the other hand, if you’re getting back more than the Advisory Fuel Rate set for your company car, you can quickly find yourself owing some tax.

PAAYE Claims

Can PAYE employees claim travel expenses for company cars?

Like other PAYE tax refunds, you can claim back everything you’re owed by sending a P87 claim form to HMRC. If your claim comes to over £2,500 in expenses, you’ll also need to send a tax return to make your claim. RIFT tax refunds can take care of all of this for you, taking all the stress and effort out of getting back the tax you’re owed.

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Our Guarantee

Our guarantee means you'll never lose a penny

When you claim your mileage tax rebate with RIFT, our unique RIFT Guarantee means that you don't have to worry about the taxman reclaiming any of your money.  So long as you give us full and accurate information, if HMRC disagrees with the amount that we've claimed and ask for the money back, we'll pay it.  It won't cost you a penny.

RIFT Guarantee

Need more help?

Wondering if you can claim a tax refund or need to submit a tax return? Use our online tools to find out if you're owed money by HMRC.

Do I Qualify?

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