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Travelling for Work: Are You Entitled To Mileage Allowance Payment?
posted on Sep 25 2013 by Jade Hensby
For those who have leased a car under a business hire rate, and you have travelled as part of your job then you may be allowed to claim back some of the money. When we say a work journey, we mean a journey that you have to make in the course of doing your job. Examples include delivering goods or making customer calls.
You can claim relief for business mileage as long as it is from your own car and not a company car. This can include travel to a temporary work address- but excludes your normal commute from home to work each day. Rates can differ depending on the type of transport you are using- cars, vans or motorbike
The approved Mileage Allowance Payment is set at 45p per mile and this can be claimed as tax free. For companies that pay under the 45p allowance, those who travel for the job can also claim the difference between what the company pay and the approved Allowance rate of 45p for the first 10,000 miles travelled, this is called Mileage Allowance Relief. However, for miles over this limit it will be a lower price of 25p per mile.
The allowance can be calculated simply by adding up the total miles travelled during the tax year and total amounts received relating to that tax year. You should also keep in mind that it does not matter how many cars /vans you use during the year, you will be treated as though you had used the same vehicle throughout.
If you qualify for this you can complete a self assessment tax form and enter the details of your business mileage in the Employment section. If you dont usually complete a self assessment tax form then you can complete the HMRC form P87, also known as the Tax relief for expenses of employment. You will need to keep a record of the work journeys you personally made, including the date, mileage and details of the journey). This is so your employer will know the mileage you totalled up and can pay you the right expenses payment.