Mileage Claim for the Employed & Self Employed
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.
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.
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.
Always talk to your accountant before acting on any advice. If you’d like to talk to us about your accounting requirements, please complete the contact form >>>> HERE <<<< and we’ll get in touch.