Can I claim tax back for using my car?
One of the most common expenses that people claim is for business miles this is normally the use of their car for work purposes. You are entitled to tax-free reimbursement for costs of travelling if you are required to travel to fulfil your job.
What counts as business travel?
Business travel includes journeys you have to make to carry out your work. This includes travel from your place of work to visit your customers using your car, motorbike, bicycle or van. Business travel also counts if you are travelling from your home to visit a client, but only for the extra miles from the distance of your home to your place of work. If you work from two offices for the same job, you can also claim travel between the two as business miles.
What are the approved mileage payment rates?
For cars and vans, you can claim 45p per mile for the first 10,000 business miles a year and then 25p per mile for every mile after 10,000. For motorbikes, you are entitled to 24p a mile, even after 10,000 and bicycles are 20p for every mile.
If the driver also is carrying another employee during business travel, then an extra 5p can also be claimed towards business mileage.
If you would like to find out more, then please get in touch with Bedford Accountants today to see what we can do for you!