We're here to support hardworking individuals like you in getting the recognition you deserve for every mile you drive.
If your job involves using your personal vehicle, there are two fantastic options to ensure you're fairly compensated.
You can either report your mileage to your employer for reimbursement (if they cover work-related miles), or you might qualify for Mileage Allowance Relief from HMRC, depending on the number of business miles you travel.
Curious about how much tax relief you're eligible for?
It's a breeze to calculate! Just sum up your business mileage over the tax year and multiply it by the approved mileage rates.
Here's how it breaks down:
- If your employer doesn't provide a mileage allowance, you can claim the entire approved amount of Mileage Allowance Relief.
- If your employer's allowance is less than the approved amount, you can still claim Mileage Allowance Relief for the difference.
- Should your employer provide more than the approved amount, keep in mind that you might need to pay taxes on the excess.
For the nitty-gritty details of how to include these deductions in your taxes, it's always a good idea to reach out to a tax professional. They'll ensure you're on the right track and using the correct forms.
Remember, following the tax instructions for deducting vehicle use for business purposes is key.
To make your life even easier, when you label your drives through your account on the web dashboard (dashboard.mileiq.com), you can see how HMRC deductions affect your business income.
Just a quick tip: HMRC asks for a "Purpose" for each drive, and you can add this right from the dropdown menu in your dashboard.
For more comprehensive information about using your vehicle for business in the UK, the HMRC article on the topic is a goldmine of knowledge.
At MileIQ, we're dedicated to simplifying the process of submitting your mileage for expenses, invoices, or taxes.