HMRC mileage claims

Work Mileage Tax RebateWhat is work mileage tax relief?

When you're using your own care for work travel, mileage tax relief is a way of bringing down your yearly tax bill.  Depending on your employer, you might already be getting a mileage allowance to help with the costs.  If you're not, or if you're getting less than the AMAP rates, you can claim some tax relief from HMRC as a work mileage tax rebate.

The mileage rebate rules for company cars are a bit different, so you might need to take a look at those as well. Either way, if you’re shelling out for your essential work travel you should be claiming some tax relief from HMRC.

HMRC Business Mileage ClaimHow do HMRC mileage tax rebates work?

At RIFT, we’ve got teams of experts to make sure you don’t miss out on the refunds you’re owed. We’ll keep you in the loop throughout the process through your free MyRIFT account. Wherever you are in the world, you can ask questions, update details and check your claim’s progress at any time. Here’s how a work mileage tax rebate works:

• HMRC allows specific amounts of tax relief for using your own car for travel to temporary workplaces. These are called the Approved Mileage Allowance Payment (AMAP) rates.
• If you aren’t getting the full AMAP rates back from your employer, you can claim the difference from HMRC instead as a work mileage tax rebate.
• If you’re claiming for up to £2,500 of expenses over a year, you can use a P87 form to make your claim. If you’re claiming more, you’ll need to file a Self Assessment tax return to get your refund. Either way, RIFT can handle the paperwork for you and make sure you never miss out on anything you’re owed.

The amount of refund cash going unclaimed each year is incredible – not far off £200 million! What’s more, there’s a hard deadline for getting your money back. If you haven’t made your claim by April after 4-years, you’re out of luck forever.

HMRC Mileage ClaimCan you claim tax back for driving to work?

Things get complicated quickly when you claim mileage for work, and not all your travel necessarily counts. To qualify for a work mileage tax rebate, you need to be:

• Making your own way to temporary workplaces (where you work for less than 24 months).
• Travelling as an essential part of the job.

When you claim business mileage for driving to work, a standard commute to a permanent workplace won’t earn you any tax relief. It’s not just a question of getting back your costs, either. What you’re actually claiming mileage relief on is the tax you’ve paid on your travel expenses. That could mean using your own car for work journeys, travelling by public transport or both. If you’re spending your own cash on this kind of travel, you can claim a work mileage tax rebate.

Getting confused over what you’re owed is a big reason why people claim too little or too much tax back. That can mean missing out badly, or even getting on the wrong side of HMRC.

MAR and MAPWhat's the difference between MAR and MAP?

• MAR or Mileage Allowance Relief is provided by HMRC in the form of tax deductions, this isn't something your employer pays.
• MAP or Mileage Allowance Payments is paid via your employer.

Company car tax backDo companies have to pay 45p per mile for company cars?

The AMAP rates (45p per mile for the first 10,000 miles then 25p per mile afterwards) are only used when you drive your own vehicle for work. Company cars use Advisory Fuel Rates instead.

Advisory Fuel Rates depend on the kind of company vehicle you drive. They’re worked out using the following tables:

Petrol

Diesel

LPG

Electric

From 1st March 2025, the advisory electric rate for fully electric cars will be 7 pence per mile.

Hybrid cars use either the petrol or diesel rate.

PAYE ClaimsCan PAYE employees claim travel expenses for company cars?

Like other PAYE tax rebates, you can claim back everything you’re owed by sending a P87 claim form to HMRC. If your claim comes to over £2,500 in expenses, you’ll also need to send a tax return to make your claim. RIFT tax refunds can take care of all of this for you, taking all the stress and effort out of getting back the tax you’re owed.