Mileage tax rebate

Employees whose job duties require them to drive to temporary sites with their own vehicle can be eligible to claim a mileage tax refund from HM Revenue & Customs if their employer is not adequately compensating them for their trips.

The HMRC business mileage rates remain unchanged from the previous year, which is consistent with the unchanged status of the HMRC mileage rate over the past 12 years. For the tax year 2023/2024, the mileage rates are as follows:

• 45p per mile for the first 10,000 miles for business purposes.
• 25p per mile for each business mile after the initial 10,000 miles.
• 20p per mile specifically for cyclists.

In 2023, you have the opportunity to claim a tax refund for the mileage incurred during various business or work-related trips. Some instances where you can seek reimbursement for your mileage include:

• Traveling to meet a client for work purposes.
• Commuting from your office to another work location to carry out a job.
• Journeying to attend a conference or similar professional event.

Gathering the necessary documents is the first step to initiate your mileage tax rebate claim. Ensure you have valid proof of identity, such as a passport or driving license, along with proof of address, such as a bank statement or utility bill. Eligibility for tax refunds extends to various mobile workers, including delivery drivers, gas engineers, mobile carers, security guards, professional athletes, and more. Our service allows eligible individuals to claim refunds for up to four years, with an average refund of £2,500 over this period.

To support your claim, you will need to provide certain documents, including payslips, P60 and P45 forms, a list of bases with corresponding dates, receipts for courses you attended and personally paid for, receipts for mess dress and formalwear, as well as travel expenses (with MOT certificates helping to support travel claims).

When it comes to the mileage tax rebate calculation, you can expect the following rates:

• 45p per mile for the first 10,000 miles traveled.
• 25p per mile for each mile beyond the initial 10,000.

For instance, if someone has traveled 11,000 miles to temporary work locations over a span of 12 months, they would be eligible for a mileage tax rebate of £950 from HMRC.