Many employers pay their employees expenses for business mileage, but often the amount they pay is below the HMRC approved rates shown below.
If your employer pays at rates below the HMRC Approved Rates you can claim tax relief on the difference, this can add up to a lot of money particularly for site based staff who can count travel to temporary places of work as business travel or for workers who’s place of work is their home.
You can claim the tax relief via your self assessment return or by writing to HMRC.
Travel – mileage and fuel allowances
|From 2002/03 to 2010/11||First 10,000 business miles in the tax year||Each business mile over 10,000 in the tax year|
|Cars and vans||40p||25p|
|From 2011/12||First 10,000 business miles in the tax year||Each business mile over 10,000 in the tax year|
|Cars and vans||45p||25p|