Can I Claim Mileage? – UK Mileage Claim

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When it comes to being an employee, there are a lot of rights that you may not be aware of. This is not surprising, given that there are also a lot of rules that are not known by the public. However, there are nuggets of knowledge that we might be privy with, but we can have some difficulty in understanding all of it. This is why it is important to do your research regarding these rights.


For example, one of the most confusing parts of this is compensation specifically with claims. There are some areas wherein it may not be clear for all the parties involved. For example, mileage is seen as one of the more complicated ones since it involves processing the time used for driving the vehicle. Claiming it can be a strain, but there are some ways that you can succeed with it. 


Cars and Mileage


To answer the question, you can claim mileage but on certain conditions. One of the main ones is you should be using the vehicle for business purposes. As long as it is for the benefit of the company, then it can be considered as a business. You need to be careful with how you can defend this one though, as some areas still are considered a grey one. For example, using the car for business while still doing a stopover in the countryside.


Another aspect that you need to be aware of is the difference between using a company-owned vehicle or your own. If it is company-owned, then you might not be entitled to the claim. If you are using your own though, then this can be calculated and added to the claim. This is important since some people would do otherwise, and lie about their choice of car. 

Rates for Claims


Mileage rates differ depending on various aspects like the type of business and the rules and regulations that you need to follow. However, the HMRC or HM Revenue and Customs advise that you can claim the mileage for 45p per 10,000 miles for business purposes. This can only be applied to cars and vans though, as they do have a higher rate when it comes to fuel consumption. 


Once you have already reached the first 10,000 miles before the year ends, then the calculation changes. It will revert to 24p and it will be the rate as you go further. With motorcycles, it is the same rate throughout with 24p as well. On the other hand, bikes’ rate goes to 20p. All of them use 10,000  miles as a base so calculate early before the year ends. 


As an employee, it is important to calculate these claims because you would need them by the end of the year. You are already working for the company; it would not make sense to spend your money on them as well. Even though those are the rates, it can still help with your year-end claims. As long as you are following the law, then you do not need to worry about it. 

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Annette Ferguson

Annette Ferguson

Owner of Annette & Co. - Chartered Accountants & Certifed Profit First Professionals. Helping Online service-based entrepreneurs find clarity in their numbers, increase wealth and have more money in their pockets.