5 Questions you need to ask when claiming mileage expense in the UK!
1. Can I claim mileage in the UK?
Most employers will pay your mileage expenses however, if they don’t, or they don’t cover the full amount you can claim back the tax from HMRC.
2. What’s covered?
If you travel for work you may be able to claim “Mileage Allowance Relief”. You can’t claim for travelling to and from work (unless its’ a temporary place of work), this is classified as private travel.
3. Can I claim mileage if I have a company car?
If you use a company car for business related trips you can still claim tax relief. You will need supply sufficient evidence of costs and your employer may cover some, or all of this. Again, if your employer only covers part of the cost, you may be able to claim tax relief on the remaining amount.
4. I use my bicycle for business trips, can I claim mileage?
In sort, yes. The government has introduced a range of cycle-friendly tax incentives to help reduce the UK’s carbon footprint. If the nature of your journey is business related then you are entitled to 20p per mile.
5. What are the mileage rates in the UK?
(First 10,000 miles in tax year)
Cars and vans 45p
(Each business mile over 10,000 in tax year)
Cars and vans 25p
(Correct at time of publication)
Head over to gov.uk for the official ruling and make sure you are claiming the correct rate.
For automated, accurate mileage expense reporting head over to psngr.co and try their free app.