Mileage Allowance Relief: Who Qualifies and What You Get
If you use your own vehicle for work travel, you may be able to claim tax relief on your fuel and mileage costs.
Mileage Allowance Relief is a way for employees to claim tax relief if they use their own vehicles for work-related travel.
Who it's for
This is for employees who use their own personal vehicle to travel for work purposes.
What you get
You can receive tax relief on the cost of your mileage if your employer does not pay you enough to cover your actual travel expenses. Essentially, if your employer's reimbursement rate is lower than the official rate, you can claim the difference back from the tax authorities.
What it costs you
To make a successful claim, you must keep a detailed log of all your business miles. You will need to provide evidence of your travel to show that the trips were for work rather than personal use.
The catch to know
The most important thing to remember is that traveling from your home to your permanent place of work is considered commuting, not business travel. You cannot claim relief for your daily commute to a fixed workplace.
How to apply
- Keep a written record of all business miles driven.
- Compare your employer's payments against the official reimbursement rates.
- Submit a claim for the difference through the appropriate tax channels.
- Find more details on the official portal: https://www.gov.uk/tax-relief-for-employees/business-mileage-fuel-costs