HMRC has confirmed a 45p per mile tax handout for petrol drivers. You may be able to claim tax relief if you use cars, vans, motorcycles or bicycles for work. This does not include travelling to and from your work, unless it is a temporary place of work. How much you can claim depends on whether you are using a vehicle that you have bought or leased with your own money, or a vehicle owned or leased by your employer (a company vehicle).
You can claim for the current tax year and the four previous tax years, if you are eligible. If you use your own vehicle or vehicles for work, you may be able to claim tax relief on the approved mileage rate. This covers the cost of owning and running your vehicle.
Approved Mileage Rates
For the first 10,000 business miles in the tax year, cars and vans can get 45p per mile, while motorcycles get 24p and bicycles 20p. For each business mile over 10,000, cars and vans get 25p, motorcycles 24p, and bicycles 20p.
Claiming for Company Cars
HMRC states: "You can claim tax relief on the money you have spent on fuel and electricity, for business trips in your company car. Keep records to show the actual cost of the fuel. If your employer reimburses some of the money, you can claim relief on the difference."
What You Need to Claim
When you claim, you must send HM Revenue and Customs (HMRC) copies of your mileage logs. These logs must include the reason for every journey, the postcode for the start point of every journey, and the postcode for the end point of every journey. If you are claiming for more than one employment, you must send a copy of your mileage log for each.
Online, you can use the HMRC service to check if you can claim and also check how to claim.
