Finance Specials

February 9, 2013

What is a Business Mileage Tax Rebate?

It is very common for people to use their own car, van or motorbike to travel for work purposes but many do not know that they can claim a tax rebate on the mileage driven. You cannot claim a mileage tax rebate for normal commuting to one place of work and only for business mileage incurred for work purposes. You do not have to be self employed to claim with many people who are normally employed being eligible make a claim for mileage tax relief.

Am I eligible to claim for business mileage?

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 Can I Claim?

The amount you can claim depends on the mileage allowance rates as agreed by HMRC, and if you are paid any mileage allowance from your employer. The mileage allowance rates for the 2012/2013 tax year are a fixed amount of .45p per mile for the first 10,000 business miles and .25p per mile thereafter. If you are paid a mileage allowance from your employer this has to be taken into consideration. If the allowance is paid untaxed then the amount has to be deducted from your claim. If you are paid a mileage allowance which is taxed then you will typically still be able to claim back the full mileage rates.

How Far Back Can I Claim For?

A mileage tax rebate claim can at present be made for the last four tax years meaning that a claim can be made from the 2008-2009 tax year. A deadline is currently in place of the 5 April each tax year for the last tax year to be claimed for, so making a claim sooner rather than later is a good idea to make sure you do not miss out.

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. have successfully helped many people claim back the maximum business mileage rebate possible to them, quickly and easily.

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Filed under Taxes by Paul Kleinfelt

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