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Hit the Road with Tax Savings: Your Guide to Mileage Rebates with Rebate Mate

  • Writer: Rebate Mate
    Rebate Mate
  • Apr 4, 2024
  • 2 min read

Are you clocking miles on the road for work? Well, the UK's tax laws are in your corner, allowing you to claim back tax for your mileage. Whether your employer is already compensating you for mileage or not, there's an opportunity to claim back from HMRC, and that's a win-win in our books!


Understanding Mileage Allowance

'Mileage allowance' is what you can claim back from HMRC for the miles you've travelled for work. HMRC sets Approved Mileage Allowance Payment (AMAP) rates to cover your travel expenses and vehicle running costs. Currently, they stand at:

  • 45p per mile for the first 10,000 miles in a car or van, then 25p per mile thereafter.

  • 24p per mile for motorcycles.

  • 20p per mile for bicycles.


If your employer is already covering you at these rates, you won't be able to claim from HMRC as well. But, if you're getting less, you can claim the difference.


Now, before you get too excited thinking about claiming for your daily commute, it's essential to note that HMRC specifies the travel must be work-related, such as travelling between offices or to external meetings. Routine commutes or short, non-work-related journeys don't qualify.


Claiming Your Mileage Rebate

Claiming your mileage from HMRC is straightforward but requires diligent record-keeping. You'll need to log:

  • Dates of travel.

  • Start and end addresses, including postcodes.

  • Distance travelled.

  • Any mileage allowance received from your employer.


For claims under £2,500 a year, use the HMRC form P87. For claims over this amount, or if you're self-employed, you'll need to complete a Self Assessment tax return. You can claim for up to four tax years back, but after that, you'll lose out on unclaimed rebates.


Making Mileage Reimbursement Work for You

To maximise your claim:

  • Document every journey meticulously.

  • Keep records for at least 5 years in case of an HMRC audit.

  • Submit your claim timely, ideally between April to early May.

  • Regularly claim each year to avoid backlog and maximise your rebates.

  • Don't forget to claim for public transport costs if they're work-related.


While claiming your mileage rebate from HMRC can be done personally, it involves precise calculations and understanding tax laws. This is where Rebate Mate shines. We're here to lift the burden off your shoulders, with our accountant experts managing your claims effortlessly. From tracking down tricky information to handling all the number-crunching, we make the process super simple for you.


With Rebate Mate, claiming back on your mileage is hassle-free. Let us take care of everything, so you can focus on what you do best. Get in touch with Rebate Mate today and start your claim for free! Let's drive your tax savings forward together.



 
 
 

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