What is the Mileage Allowance Relief for Employees?
If you’re an employee and use a personal car for business, you may be entitled to tax relief. Let’s go over the mileage allowance relief for employees and how to claim it.
What is mileage allowance relief?
The HMRC knows there’s a cost to using your personal vehicle for work reasons. That’s why it may let you claim some tax relief for the miles you put on your car. This is true whether you have a car allowance or mileage allowance.
What are the mileage allowance payment rates?
|Type of Vehicle||First 10,000 Miles||Above 10,000 Miles|
|Cars and Vans||45p||25p|
How to use these rates for mileage allowance relief
If you use your own vehicle and don’t receive a mileage allowance, track your business miles for the year and then multiply it by the rates above. So, if you drove 9,000 miles, your tax relief would be £4,050.
If your employer pays a mileage allowance less than the rates, claim the Mileage Allowance Relief on the difference. If your company gives you more than the standard rates, you’ll pay a tax on the difference.
You must keep a record of your drives
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