If you incur mileage in your own vehicle as part of your daily work for your employer, you are entitled to make a claim for your costs. Currently, HMRC states that you can claim 45p per mile (up to 10,000 miles, after which the rate drops to 25p) if you drive a car or a van, 24p for a motorcycle and 20p for a bicycle.
Can I claim mileage for my electric company car?
Employees with electric cars can, therefore, claim the same tax-free Approved Mileage Allowance Payments (AMAPs) as petrol or diesel cars. Some things to note: Employees can claim 45p per mile for the first 10,000 business miles in the financial year, and 25p per mile thereafter.
What are the business mileage allowances for electric cars?
From 1st September 2018, employees driving on business in a pure electric company car can claim 4p per mile. And when employees drive their company car on private journeys, they will use the AER to repay the cost of electricity at 4p per mile.
How much mileage can I claim on my tax return?
The level of Mileage Allowance Relief a driver can claim for tax purposes cannot exceed 45p per business mile (25p per mile if the mileage exceeds 10,000) less any amount already paid tax free to the driver. The maximum relief for NIC is always 45p per business mile.
Can a company reduce the business mileage allowance?
For example, if your company cars are highly efficient you can reduce your business mileage allowance. Or, if the cost of travel is higher than the guideline rate, you could increase it. However, to avoid paying tax and class 1 national insurance contributions, you would need to be able to demonstrate the reason for your adjustment.
Do you get paid for company car mileage?
HMRC do offer mileage expenses for business travel, though different rules apply depending on who owns the car – which can make it difficult to work out! Employees who drive a company car are paid mileage based on the size and type of engine. The mileage for petrol, diesel and hybrid company cars in this category is paid at the Advisory Fuel Rates.
