Free HMRC Mileage Claim Form
Many employees and self-employed individuals in the UK use their own vehicles for work trips. Others opt to use bicycles or motorbikes. The expenses for business travels add up quickly.
The good news is that HMRC (Her Majesty's Revenue and Customs) recognizes these costs and allows workers to claim tax relief on a portion of their mileage expenses. This translates to putting more money back in their pockets.
Our detailed guide will walk you through everything you need to know about claiming mileage on your taxes in the UK. This includes how much you can claim, the HMRC mileage claim form you need to use, and the entire process you need to follow. We will also look at how Timeero can automate mileage tracking to simplify the process for you.
Can I Claim Tax Relief in the UK?
Yes, according to the UK government, you can claim tax relief if you use a bicycle, car, or motorcycle. However, this only applies when you use your personal vehicle for work-related purposes or utilize a company vehicle.
Keep in mind that you can not claim your commute from home to your workplace. If you are eligible for tax relief, you can claim for the current tax year and the past four tax years.
Employees who use their own cars for business purposes can claim tax relief at the approved mileage rate. This is meant to cover the cost of owning and operating the vehicle. You cannot submit separate claims for expenses like vehicle tax, fuel, MOTs, electricity, or repairs.
On the other hand, workers who use company cars can claim tax relief on money they’ve spent on electricity or fuel when taking business trips in the vehicle. In this case, they will need to keep detailed records of the costs for fuel and electrical charge. If the employer reimburses a partial amount, they can claim tax relief on the difference.
It is also worth noting that not all travel with your vehicle qualifies for mileage tax relief.
Here's a breakdown of eligible and ineligible journeys:
Eligible Journeys
- Traveling between different customer sites throughout the workday
- Running work-related errands like going to the bank
- Collecting or delivering tools or equipment needed for work
- Traveling between your usual permanent workplace and a temporary one
- Trips to attend mandatory or relevant training courses related to your job
- Travel between different franchise locations if they're all considered your usual workplace
Ineligible Journeys
- Commuting between your home and your usual workplace (unless you have no fixed workplace). To understand this better, check out our commuting mileage reimbursement guide.
- Personal errands or trips not related to work
What Form Do I Use to Claim Mileage on Taxes?
The HMRC mileage claim form you use depends on your employment status.
Employees
If you're an employee and your total work-related expenses for the tax year are £2,500 or less, you can claim tax relief through form P87. This form allows you to claim a variety of work-related expenses including mileage.
You can find a downloadable version of form P87 on the GOV.UK website.
Self-Employed Individuals
If you're self-employed, you cannot use form P87. Instead, you claim mileage relief through your Self Assessment tax return. When filing your Self Assessment, there's a dedicated section for claiming business expenses, which includes mileage.
Heads Up: If your total work-related expenses for the tax year exceed £2,500, you'll need to complete a Self Assessment tax return anyway, regardless of whether you claim mileage.
How Much Can I Claim for Mileage in the UK?
HMRC offers a set of approved mileage rates that take into account your vehicle's general wear and tear, as well as fuel and other operating costs. These rates are reviewed annually, so it's important to check the latest figures before submitting your claim.
Here are the rates as of 2024:
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If your employer already provides a mileage allowance, the amount you can claim through HMRC may be reduced. You can only claim the difference between the employer's allowance and the HMRC-approved rate. If the amount you are reimbursed is at a rate equal to or higher than the approved amount, you wouldn't be eligible for additional tax relief.
Let’s look at an example:
Sarah, a marketing consultant, is self-employed. Throughout the tax year (April 6th, 2023 - April 5th, 2024), she used her car for the following business journeys:
- Client meetings: 5,000 miles
- Training course: 200 miles
- Seeking new business opportunities: 1,000 miles
Based on the HMRC-approved rates, the first 10,000 miles driven are 45 pence per mile, and any remaining mileage is charged at the rate of 25 pence per mile.
Sarah calculates her total mileage for the year: 5,000 miles + 200 miles + 1,000 miles = 6,200 miles.
Since the total mileage falls under the 10,000-mile threshold, Sarah would claim the entire flat rate amount at 45 pence per mile.
Here's the calculation: 6,200 miles * 45 pence/mile = £2,790
Sarah does not receive a mileage allowance from her business. During her Self Assessment tax return, she should report the total mileage (6,200 miles) and the corresponding claim amount (£2,790). This will help reduce her tax bill for the year.
In certain situations, you can claim an additional amount of up to 5p per mile, tax-free, for carrying a passenger on a business trip. For instance, if you transport a colleague to a client meeting, you might be eligible for passenger payments.
How Do I Claim Mileage Back from HMRC?
Here's a step-by-step guide on how to claim mileage back from HMRC.
1. Keep Detailed Records
It is absolutely essential that you have accurate records to support your claim. Here's what to track for each business journey:
- Date of Travel: Make sure you record the exact date you undertook the work journey.
- Starting & Ending Mileage: Record the mileage reading on your odometer at the beginning and end of the trip. This will allow you to calculate the total business miles traveled. You can use a mileage logbook to do this, but using one of the best mileage tracking apps would be more accurate.
- Destination & Purpose: Briefly note the destination of your trip and the business purpose behind it. For example, "Meeting with client John Smith at The Smith Company premises."
2. Calculate Your Total Business Miles
Using your mileage record, calculate the eligible miles you have traveled in a given year. Multiply the result by the approved HMRC mileage rates to claim your business mileage. Use the rates in the table we provided above.
3. Determine the Mileage Deduction You Qualify For
Multiply the mileage rate for your vehicle by the total number of business miles you have driven to determine your business mileage claim. Subtract any mileage allowance payments you received from your employer throughout the year from the total amount of eligible mileage claims.
4. Fill Out Your HMRC Mileage Claim Form
- Employees using the P87 form: Carefully complete sections of the form that specifically focus on details related to mileage claims. Submit the completed form to your employer with your receipts (if applicable).
- Self-Employed Individuals: When filing your Self Assessment tax return, enter your business mileage details in the designated section for claiming expenses.
5. Maintain Records
HMRC highly advises that all taxpayers maintain accurate and comprehensive records to facilitate accurate tax returns. Save your records for a minimum of five years following the submission of your mileage claim in case HRMC audits your tax return.
How Can Timeero’s Mileage Tracker Simplify Your HMRC Mileage Claims?
Tracking mileage the old-fashioned way with pen and paper might seem like a simple, budget-friendly option. But the reality is that creating and maintaining mileage logs can be incredibly tedious. Imagine the hours spent manually recording trips and mileage details – time that could be better spent on other core tasks.
Manually entering data also leaves room for mistakes, which can lead to inaccurate claims and potential tax issues. Automated mileage tracking systems like Timeero offer a smarter solution.
Unlike some apps where users have to switch between tracking personal and business trips, Timeero automatically tracks mileage during work hours. This means employees simply clock in when they start their workday and clock out when they finish - the app handles the rest.
Timeero ensures that only actual driving is recorded for mileage claims. The app does this by ignoring driving speeds below a set threshold with a default of 4.4 miles per hour. It captures GPS points when the distance traveled exceeds 150 feet. These measures effectively filter out walking commutes and traffic jams.
Additionally, administrators can customize the speed threshold within their accounts to best suit their specific needs. For instance, if your company prefers to use 5.5 miles as your speed threshold, you can change it in your account settings. This provides accurate mileage data and prevents any unnecessary inclusions.
Do you have employees who face internet connection problems while on the road? Timeero has a solution for that. Its offline mileage tracker continues recording miles even in areas with spotty internet connection, eliminating gaps in your mileage record.
Timeero introduces a unique feature called "Commuter Mileage" that takes the hassle out of classifying work trips. When you enable this feature, you can define a threshold distance, which typically represents the usual commute distance from an employee's home to their first work location. For example, if the average worker commute is 7 miles, you can set the distance threshold to 7 miles.
Timeero will then only track and record mileage that exceeds the predefined threshold. Any trips less than 7 miles would be considered commuting and wouldn't be included in the reimbursable mileage total. This ensures the employer pays only for legitimate business travel, not daily commutes.
Once an employee travels beyond the predefined distance threshold, the app seamlessly switches into tracking business mileage. This ensures only business-related travel gets recorded, eliminating confusion and simplifying mileage claims.
To keep everyone on the same page, it is best to develop a policy that outlines what counts as mileage and how your company will reimburse it. You can use our free mileage reimbursement policy template to do this.
How else can Timeero benefit your business? Let’s look at some of its key features.
Timesheets
Timeero offers a comprehensive solution for managing all aspects of mileage reimbursement, including tolls. This eliminates the need for companies to maintain a separate toll expense record.
When employees use Timeero to record their work trips, there is room to include details about any extra expenses incurred. They can do this by adding a note or even snapping a picture of the toll receipt directly within the timesheet.
For example, an employee can add a picture of a receipt specifying it as a "parking fee" on their timesheet. This ensures clear communication and removes the need for additional documentation or explanations. The designated admin reviewing timesheets can then easily see this information and handle the reimbursement accordingly.
GPS Tracking
Timeero leverages GPS technology to provide real-time location data for your employees while they're clocked in. This functionality offers an extra layer of transparency, as you can view each worker’s location.
Here's how it works: Once an employee starts their shift using the Timeero mobile app, the GPS function kicks in. This transmits the employee's location data to the Timeero system, allowing you, as the employer, to see where your team members are physically located on a map in real-time. You can do this by visiting the Who’s Working dashboard.
Businesses with field service employees, delivery staff, or regionally distributed teams will find this to be very helpful.
Segmented Tracking
Timeero's Segmented Tracking goes beyond basic mileage tracking. It provides a detailed breakdown of your employees' workday, broken down into easily digestible chunks. This includes:
- Locations visited
- Mileage covered
- Time spent at each site or job
This information helps you understand how your team members spend their time and improves overall efficiency. The best part about using segmented tracking is that there is no extra work for your staff. They simply clock in and out once at the start and end of their day, while Timeero captures details about their hours.
Suggested Route
Timeero's Suggested Route feature takes efficiency and accountability to the next level. By presenting employees with the most optimized route to their destination, workers cut down on driving time and fuel costs are lowered.
Route Replay
Timeero's Route Replay feature is a game-changer for understanding your field team's travel patterns. By utilizing Route Replay, you can eliminate mileage claim discrepancies because the feature ensures precise records by visualizing the exact paths taken.
Additionally, you can easily identify potential inefficiencies and pinpoint areas for improvement in travel routes. Route Replay allows you to verify employee movements at any given time. This is a great way to encourage transparency and accountability in case there is conflict.
Integrations
Timeero eliminates the tedious and repetitive tasks traditionally associated with employee mileage reimbursement processing.
Timeero integrates with various payroll and invoicing platforms, including Paychex, Xero, ADP, Gusto, Rippling, Zapier, Vieventium, and Paylocity. This allows Timeero to quickly share employee mileage data with these platforms, streamlining payroll calculations.
Use Timeero to Guarantee Accurate HMRC Mileage Claims
Claiming mileage expenses through HMRC can be a valuable way to reduce your tax burden and offset the costs associated with using your own vehicle for work. By understanding the rules, keeping detailed records, and following our helpful tips, you can submit an accurate mileage claim.
Remember, using an app like Timeero to track mileage for work helps keep your business travel expenses in check. Download our free HMRC mileage claim form and use Timeero to make sure your claims are precise and submitted on time.
HMRC Mileage Claim Form: FAQs
How Far Back Can I Claim Mileage Expenses from HMRC?
You can claim mileage expenses for the current tax year (running from April 6th of the previous year to April 5th of the current year) and the four preceding tax years. For example, as of June 2024, you could potentially claim mileage expenses incurred from April 6th, 2020, and onwards.
