Many people use their own vehicle for work purposes, however not a lot of people realise they can claim tax back for this. A tax rebate can be claimed for business mileage, which is mileage travelled for work purposes and during work hours. It is not possible to claim tax back for commuting to a normal place of work. You can claim tax relief for business mileage whether you work for an employer or are self employed.
Who can claim a Business Mileage Tax Rebate?
To be eligible to claim the mileage you drive must be to a temporary workplace and not for normal commuting to one place of work. For example if you are a sales person who travels to varying locations visiting clients, the mileage you incur will normally be classed as business mileage and not normal commuting. Similarly if you are a construction worker who attends sites which last for less than 24 months (or are expected to last for less than 24 months) a claim should be possible. You will need to provide records of your mileage for example a diary or pay slips that show mileage paid by your employer. If you do not have records a claim is still possible on some occasions but further information will have to be provided.
How Much Will I Receive?
The amount of business mileage tax rebate a person can claim depends on HMRC's agreed mileage allowance rates, and on whether any mileage is paid by your employer. For the 2012/2013 tax year mileage allowance rates are fixed by HMRC at 45p/mile for the first 10,000 business miles travelled and 25p/mile for anything over that. Any mileage allowance paid by an employer will be taken into consideration before any tax rebate is paid. If any allowance paid is untaxed the amount will be deducted from your claim. Those who are paid a mileage allowance which is taxed can usually still claim back HMRC's full mileage rates.
How Far Back Can I Claim For?
Currently it is possible to make a business mileage tax rebate claim for the last four years. This means, at the moment, a claim as far back as the 2008-2009 tax year is eligible. It is important to claim as soon as possible so that you do not miss the deadline of April 5th.
Who can claim a Business Mileage Tax Rebate?
To be eligible to claim the mileage you drive must be to a temporary workplace and not for normal commuting to one place of work. For example if you are a sales person who travels to varying locations visiting clients, the mileage you incur will normally be classed as business mileage and not normal commuting. Similarly if you are a construction worker who attends sites which last for less than 24 months (or are expected to last for less than 24 months) a claim should be possible. You will need to provide records of your mileage for example a diary or pay slips that show mileage paid by your employer. If you do not have records a claim is still possible on some occasions but further information will have to be provided.
How Much Will I Receive?
The amount of business mileage tax rebate a person can claim depends on HMRC's agreed mileage allowance rates, and on whether any mileage is paid by your employer. For the 2012/2013 tax year mileage allowance rates are fixed by HMRC at 45p/mile for the first 10,000 business miles travelled and 25p/mile for anything over that. Any mileage allowance paid by an employer will be taken into consideration before any tax rebate is paid. If any allowance paid is untaxed the amount will be deducted from your claim. Those who are paid a mileage allowance which is taxed can usually still claim back HMRC's full mileage rates.
How Far Back Can I Claim For?
Currently it is possible to make a business mileage tax rebate claim for the last four years. This means, at the moment, a claim as far back as the 2008-2009 tax year is eligible. It is important to claim as soon as possible so that you do not miss the deadline of April 5th.
About the Author:
How to make Business Mileage Tax Rebate Claim It is possible to process a claim yourself but many people prefer to seek professional help to take the hassle away. TaxRebateServices.co.uk have successfully helped many people claim back the maximum business mileage rebate possible to them, quickly and easily.
