Tax relief for employees
5. Business mileage, fuel and electricity costs
You may be able to claim tax relief on fuel or electricity you use on business.
What you can claim depends on whether you’re using your own or a company vehicle.
You can’t claim for travelling to where you work, unless it’s a temporary place of work.
Using your own vehicle
If you use your own vehicle for business, you may be able to claim ‘Mileage Allowance Relief’.
To work out how much tax relief you can claim, add up your business mileage for the tax year and multiply it by the approved mileage rates.
If your employer doesn’t pay you a mileage allowance you can claim the full approved amount of Mileage Allowance Relief.
If your employer pays you a mileage allowance but it is less than the approved amount, you can claim Mileage Allowance Relief on the difference.
If your employer pays you more than the approved amount you’ll have to pay tax on the difference.
You must keep records of the dates and mileage of your work journeys.
Using multiple vehicles
Combine your business miles if you use more than one vehicle of the same type.
Calculate them separately if you use different types of vehicles.
Using a company car for business
You can claim tax relief on the money you’ve spent on fuel or electricity for business trips in your company car. Keep records to show the actual cost of the fuel or electricity you’ve bought or used.
If your employer reimburses only some of the money, you can claim relief on the difference.