Tax Back on Work Mileage: Drive Your Way to Savings!
The thrill of the open road might be alluring for many, but for those who use their vehicles for work-related activities, those miles can accumulate – and with them, potential savings. Through the Mileage Allowance Relief offered by HMRC, every work-related mile could be a step towards a sizeable tax relief.
The Roadmap to Mileage Allowance Relief
What's in it for You?
Ever since April 2015, HMRC's provision allows for up to 45p per mile traveled in relief. That’s not mere pennies; it can add up to a significant sum!
How the Mechanics Work
This relief essentially diminishes your taxable income by deducting your business miles, scaled against the approved mileage rates. But there's a catch: any employer-provided reimbursement might curtail the relief.
Business mileage isn't your daily home-to-office commute. Think of it as those extra miles you journey while executing your professional duties. Be it a contractor hopping from one site to another or a physiotherapist attending to home calls; these are the miles that count.
Employer Reimbursement - A Double-Edged Sword
If your employer's reimbursement for mileage is lower than what HMRC approves, there's room to claim the difference. Essentially, every mile is worth more than you might be getting!
Crunching the Numbers
The calculation is straightforward. Multiply the business miles with the HMRC's approved rates, subtract any employer reimbursement, and that's your claimable amount. Remember, the final rebate is typically 20-40% of this sum, determined by your tax bracket.
For illustration, driving 5,000 miles yearly for work-related meetings, with an employer paying 25p per mile since 2015/16, you calculate: 5000×(45p−25p)5000×(45p−25p) The resulting amount showcases your potential claim.
Steer Towards Savings with Taxpro
Juggling between work commitments, car maintenance, and now, tax claims? It might feel like a tightrope walk, but with Taxpro in the passenger seat, you’re in safe hands. From discerning what qualifies as business mileage to optimising your claims, our expertise ensures your journey towards tax relief is smooth and beneficial.
So, before you set off on your next business trip, remember - every mile is not just towards your work goal but also a potential addition to your savings. Turn the ignition, and let Taxpro guide you on the road to maximum tax savings.
See why our Clients Love us
It’s more than just a rebate. It’s the trust, commitment, and dedication that Taxpro brings to the table. Thank you for going the extra mile!
Love that I didn’t owe a penny until my rebate was secure. Taxpro’s team is straightforward, efficient, and friendly.
From laundry to tools, Taxpro made sure I reclaimed every possible expense. Ive referred almost all of my friends and my company and have earned an additional £4000 in referral bonus
Customer service was fantastic, Jessica was fantastic and a credit to Taxpro. my rebates been paid out see you again in 12 months.
Being on CIS, I was already worried about my tax. Taxpro not only secured my rebate but also educated me along the way.
Helen helped me claim my rebate so quickly thanks again
Just been paid my rebate without any complications. Highly recommend!
Reached out to Taxpro about my mileage and uniform claims, and they handled everything. They’re the real experts and I was guided every step of the way.
Taxpro made claiming my tax rebate so easy. I never knew I had unclaimed money. Their team was professional and transparent. Thank you