Tax FAQ
Travel
I use my own car for business and do about
12,000 miles per year visiting customers. My employer only pays 20p
per mile which I do not believe covers my full cost. Can I recover
any of my additional costs from HMR&C?
HMR&C publish approved mileage rates which covers the costs
of an individual using their own car for business purposes
including maintenance and insurance. The current rates are 40p for
the first 10,000 miles and 25p per mile after that. Whilst these
are approved your employer does not have to abide by them. If he
pays at a higher rate than these approved rates he will have to
account for tax on the excess via PAYE. If he pays at a lower rate
he is not obliged to make up the difference.
The difference between what you are paid, in your circumstances
20p per mile for the first 10,000 miles and 5p for the additional
2,000 miles, can be recovered from HMR&C via your tax return.
You should retain copies of all expense claims to support this.
Please note that this covers employees using their own cars for
business and does not apply to employees with the benefit of a
company car.