12 Days of Tax Tips – Day 11

Mileage Claim for the Employed & Self Employed

Forest road. Landscape.Should you travel in your own car for your business or for your employers business, you would normally claim a mileage allowance (other systems are allowed for the self-employed). The HMRC approved allowance is 45p a mile (a change of rate of over 10,000 business miles traveled). Very simple for the self-employed.
BUT:

If you are employed and your employer only allows you to claim 35p a mile for driving your own car on business, what can you do? Well, if you complete a self-assessment tax return, this extra 10p a mile can be put down as an allowable cost of employment. Should you be a high volume business traveler, that 5000 business miles amounts to £500 you could have received as expenses which can give you a tax saving of up to £100.
However:

What is given with one hand is taken away with another. If your employer gives you more than 45p a mile (25p over 10,000), then you need to declare that as additional income.

 

 

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