How to: Get My Deduction or Reimbursement (UK)

MileIQ is committed to you, the self-directed worker. We want to see you get paid for the miles you drive!  Customers often ask how to get reimbursed for miles they've driven so we have put together some tips to help you get started.

If you are required to use your own vehicle for work, you can either submit your miles for reimbursement to your employer (if they pay for business miles), or you may be able to claim Mileage Allowance Relief from HMRC based on the number of business miles you travel.

To work out how much tax relief you can claim, add up your business mileage for the tax year and multiply it by the approved mileage rates.

  • If your employer doesn’t pay you a mileage allowance you can claim the full approved amount of Mileage Allowance Relief.
  • If your employer pays you a mileage allowance but it is less than the approved amount, you can claim Mileage Allowance Relief on the difference.
  • If your employer pays you more than the approved amount you’ll have to pay tax on the difference.

To deduct them on your taxes, you'll want to consult a tax professional to ensure that you are filling out the proper forms. That said, you'll need to follow the tax instructions for deducting business use of a vehicle.  

Additionally, when you classify drives in your account from the web dashboard (dashboard.mileiq.com), you can see what HMRC deductions (against your business income) would be. Just remember that HMRC requires a "Purpose" for every drive which you can add from the drop-down menu in your dashboard.

For more information about using your vehicle for business in the UK, please see this article from HMRC.

At MileIQ, we work to make it as easy as possible for you to submit your miles for expense, invoice, or tax purposes!

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