What is a mileage tax rebate and have you claimed your rebate yet?
Employees of companies that have job roles that require them to drive their own vehicle to temporary locations to do their job are entitled to claim a mileage tax rebate from HMRC if their employer isn’t compensating them for their travel in full.
HMRC's business mileage rate for 2022?
The current HMRC business mileage rates have not changed since last year. This is to be expected as the HMRC mileage rate hasn’t changed for the last 12 years.
The mileage rate for the 2023/2024 tax year is as follows.
■ 45p for the first 10,000 miles for business purposes.
■ 25p for each business mile after the first 10,000 miles.
■ 20p per mile for cyclists
Trips that can be claimed for reimbursement ?
You can claim a mileage tax refund for any trips you took for business/work purposes. Some examples of trips you can claim reimbursement for in 2024:
■ Travelling to meet a client for work
■ Travelling from your office to another work location for a job
■ Travelling to a conference
What information do I need for a mileage tax rebate?
To start, you would need proof of identity such as a passport or driving license and proof of address such as a bank statement or a utility bill. Tax refunds are available for all employees who are mobile workers, whether they are working as a delivery driver, gas engineer, mobile carer, security guard, professional athlete and more. We are able for those who are eligible to go back four years. The average 4-year refund is £2,000.
• Payslips
• P60 and P45s List of bases, including dates you were there
• Any courses you have to attend and pay for yourself.
• Mess Dress and formalwear receipts
• Travel expenses (MOT certificates help in supporting a travel claim)
How much do I get back per mile when claiming a mileage tax rebate?
• 45p (per mile) first 10,000 miles travelled.
• 25p (per mile) after the first 10,000.
E.G. If someone travelled 11,000 miles during 12 months to temporary locations of work. They would get a mileage tax rebate of £950 from HMRC.
What Can I Claim Tax Back On?
You can claim tax back on most work-related expenses. Below is a list of items that you can request a tax rebate on:
• Vehicles for work use
• Fuel & Mileage costs
• Travel expenses
• Overnight expenses (food in certain circumstances)
• Rail Tickets (single & season tickets)
• Uniforms, work clothing and tools
• Cleaning costs for uniforms
• Professional fees, subscriptions & unions fees
This list is an example of what you could claim back; there may be expenses & items specific to the job role that you could claim back.
What are the Deadlines?
- Current legislation in the UK says you can go back up to four Tax years when claiming a Tax rebate. This means at the current moment in time you can make a claim for the following periods:
- Year ended 5th April 2021
- Year ended 5th April 2022
- Year ended 5th April 2023
- Year ended 5th April 2024
Effectively this means you can claim Tax relief from 6th April 2020.
Over such a long period of time wage slips and p60s can be lost or misplaced. This isn’t a problem as you have lots of ways to obtain this information.
- Contact your current/previous employers as they are legally obliged to keep your records going back 6 years and because of GDPR if your request that information they have to provide it to you.
- You could log into your government gateway which is easy to set up if you have never done this.
- Contact HMRC on 0300 200 3300 and request that they post out to you a tax history letter which usually arrives in 10 working days from when you request it from them and this tax history letter will go back 4 years.
How long does a mileage tax rebate take to process?
How long Tax takes to come back depends on two things:
- How fast you can get the required information to ourselves
- How busy HMRC are, which depends a lot on what time of the year it is
The sooner you start a claim process, the better as it can tax 8-12 weeks for HMRC to process a tax refund.
As deadlines apply for making claims, we advise you get in touch as early as possible to avoid disappointment.
Am I Due Any Tax Back?
Most workers, whether employed or self-employed may be due a tax rebate for work-related items, expenses or because they have paid too much tax. HMRC do not know everyone’s individual circumstances, and it is up to the taxpayer to contact HMRC to see if they are entitled to any tax relief.
Other reasons for a tax refund may include pension payments, redundancy payments, interest from a savings account, PPI, or UK income if you are living aboard.
All claims for tax refunds and rebates are reviewed on a case by case basis. Use our tax claim form and answer a few simple questions to see if you could be entitled to make a claim.
