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Business Miles Tax Allowance

Do you use your own personal vehicle for business use?

Many employees don’t realise they can claim a tax rebate for using their own personal vehicle for business use.

But be aware, this doesn’t mean communting to and from one place of work.

There are lots of reasons you could use your own vehicle. You could have more than one office, you could attend meetings and conferences, or you could simply visit customers at their business or home addresses.

In some cases your employer will pay a mileage allowance to you but HMRC have rules as to how much you should be paid. For example, if you use your own car, HMRC state you should be paid 45p per mile. So if you’re employer is paying you 20p per mile, then its highly likely you have an eligible claim for the underpayment of 25p per mile and could receive a tax rebate.

If your employer hasn’t paid you anything towards the mileage, then don’t panic. We’ll work with you to calculate the amount you’re due back as a refund.

We can also backdate your claim by 4 tax years so the amount you’re due can run from hundreds into thousands. It just depends how many miles you’ve used.

In some circumstances, HMRC will automatically apply the allowance to your tax account every year so you’ll receive the benefit for years to come, but we’ll check the amount for you each year as, its highly unlikely you’ve driven the exact same miles each year so you could end up with refunds paid to you every year!

Whether you work part time or full time, as long as you pay tax over the course of the tax year and you’ve used your own personal vehicle for business miles, you could be eligible to claim. Also remember, if you’re a coupleyou’re your partner uses their vehicle for business mileage, you can both submit claims as tax is based on individual circumstances so you could both receive a payment.