Hi, How Can We Help You?

Claiming business mileage as an employee

Apr 07, 2017

Claiming business mileage as an employee - Latest Advice from Wagner Mason

If you are an employee and you use your OWN car for business and your employer doesn’t reimburse you the HMRC approved mileage rates are you claiming the difference back?

The HMRC approved mileage payments are 45p per mile for the first 10,000 miles per year and then 25p a mile for subsequent miles when using your own car.

So if you did 5,000 business miles and your employer reimbursed you 25p per mile then you can claim the difference of 20p (45p – 25p) back from HMRC to offset against tax you have paid.

The claim can also go back up to 4 tax years and can be done on a P87 form or Self Assessment Tax form (if the claim is more than £2.5k per year).

Case study: a client who is now self employed but was an employee doing c7,000 business miles per year for her employer and her partner who was doing c14,000 miles per year for his employer. Neither had been reimbursed business mileage by the employer. Between them they have received a repayment of more than £6.4k.

Also did you know that if you use a bike for business miles you can claim 20p per mile.