How to Claim a Tax Rebate on Business Mileage

uk tax rebate for expats

Do you use your vehicle for employment purposes? If so, you could be leaving money on the table in the form of a Business Mileage Tax Refund. This provision is not just for business owners. Employees that use their automobiles for business travel also qualify. Consider the following four facts about this provision.

  1. You may qualify even if you were reimbursed. The current mileage allowance rate is .45p per mile for the first 10,000 miles and .25p per mile for any additional miles. Note that if you count mileage from two different employers, you are owed the higher rate for each job. If you received a mileage allowance from your employer, but it does not meet the amount allowed by the HMRC, you can claim the difference. Additionally, if your mileage reimbursement was included in your taxed income, you may qualify for the full mileage allowance tax rebate.
  2. It’s not too late. Claims can be made for the last four tax years. Even if you are no longer employed by the same company, own the same vehicle or no longer use your vehicle for business purposes, you can still claim a tax rebate.
  3. Any business travel counts. Any driving you must do to perform your job counts, even if your employer does not think so. Remember employers are not obligated to reimburse you. You can even count travel to a temporary work place. For example, count your mileage if your office was under construction and you had to travel further to an alternate location. However, normal travel between your home and permanent workplace does not qualify for mileage reimbursement.
  4. Keep records. Employers typically want you to keep track of your travels for reimbursement. The HMRC does too. Record dates, mileage and details about where you went. Keep a log in your vehicle for easy access.

Contact us to calculate your Business Mileage Tax Refund or any other rebates you may have overlooked. We’re here to help you get what is owed.

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