Are you aware that you may be eligible to claim tax relief for using own car for work? If you use your own vehicle for work purposes, you could potentially receive tax relief on the approved mileage rate for the cost of owning and running your vehicle. It’s important to keep records of your work journeys and mileage for each vehicle type used, subtracting any amount your employer pays you towards your costs. If you use a company car for business trips, you can claim tax relief on the money spent on fuel and electricity, as long as you keep records to show the actual cost. To check if you’re eligible and make a claim, you can use the online service provided. Remember, if you complete a Self Assessment tax return, you must claim through that instead.
Overview
In this comprehensive article, we will guide you through the process of claiming tax relief for using own car for work. We will provide information on how much you can claim and the approved mileage rates for different modes of transportation. Additionally, we will explain how to make a claim and the options available for submitting your claim for tax relief on using own car for work.
Vehicles you use for work
Using your own vehicle for work can qualify you for tax relief on the approved mileage rate. This rate covers the cost of owning and running your vehicle and applies to cars, vans, motorcycles, and bicycles. However, commuting to and from your regular place of work is not included unless it’s a temporary work location. The amount you can claim depends on whether you use a vehicle that you’ve bought or leased with your own money or a company vehicle owned or leased by your employer.
Using your own vehicle for work
If you use your own vehicle for work purposes, you can claim tax relief on the approved mileage rate. This rate covers the cost of fuel, vehicle tax, MOTs, and repairs. To determine how much you can claim for each tax year, you should keep records of the dates and mileage of your work-related journeys. Subtract any amount your employer pays you towards your costs, known as a ‘mileage allowance’, from your total claim.
Using a company car for business
If you use a company car for business trips, you can claim tax relief on the money you’ve spent on fuel and electricity. Keep records to show the actual cost of the fuel, and if your employer reimburses some of the money, you can claim relief on the difference.
How much you can claim
The amount you can claim for tax relief depends on the specific expense and whether you are using your own resources or a company vehicle. It’s important to keep detailed records of all relevant expenses and consult with a tax professional or refer to HM Revenue & Customs guidelines to determine the exact amount you can claim for each category.
Approved mileage rates
For individuals using vehicles for work purposes, there are approved mileage rates that determine how much tax relief can be claimed. These rates differ depending on the type of vehicle and the number of business miles travelled in the tax year.
First 10,000 business miles in the tax year
For cars and vans, the approved mileage rate is 45p per mile for the first 10,000 business miles in the tax year. For motorcycles, the rate is 24p per mile, and for bicycles, it is 20p per mile.
Each business mile over 10,000 in the tax year
Once you exceed 10,000 business miles in the tax year, the approved mileage rate decreases. For cars and vans, the rate becomes 25p per mile, and for motorcycles and bicycles, it remains at 24p per mile and 20p per mile, respectively.
How to claim on using own car for work
To claim tax relief for your expenses, you can use an online service provided by HM Revenue & Customs. This service allows you to check if you are eligible for a claim and to submit your claim electronically. It is a user-friendly process that provides step-by-step guidance to ensure you complete your claim accurately.
Use this service
By using the online service, you can easily determine your eligibility for a claim and submit your claim electronically. The service will guide you through the necessary steps and ensure you provide all the required information to support your claim.
If you complete a Self Assessment tax return, you must claim through your tax return instead
For individuals who complete a Self Assessment tax return, it is important to note that any claims for tax relief on job expenses must be made through your tax return.
In conclusion, claiming tax relief for job expenses can provide you with valuable savings and reimbursements for expenses incurred while carrying out your work. Whether it’s expenses related to working from home, using vehicles, purchasing equipment, or paying fees and subscriptions, it’s important to keep detailed records and consult with a tax professional or refer to HM Revenue & Customs guidelines to ensure you claim the appropriate amount. By utilizing the online service or including the necessary information in your tax return, you can ensure a smooth and accurate process for claiming your tax relief.