HMRC has updated mileage tax relief rules with new Approved Mileage Allowance Payments (AMAP) fees coming into effect earlier this year. AMAP fees are the maximum tax-free amount that an employer can pay an employee for using their own vehicle for business journeys.
Fees are very rarely changed, with HMRC last updating car and van rates back in 2011. Before April 6 this year, approved mileage rates for cars and vans stood at 45p per mile for the first 10,000 miles. However, this has been increased from this spring with drivers now able to claim back up to 55p per mile.
Drivers of cars and vans will still be able to claim back 25p per mile on travel after 10,000 miles. Meanwhile, motorcycles are also unaffected, with owners still able to only claim back 20p per mile.
According to GOV.UK, road users may be able to claim tax relief if they use cars, vans, motorcycles or bicycles for work. Individuals using a vehicle that they have bought or leased with their own money for work purposes can claim back cash using the Approved Mileage Allowance Payments rates.
This covers the cost of owning and running your vehicle, with owners forced to keep records of the dates and mileage of work journeys to correctly work out claims.
Motorists making a claim must send HM Revenue and Customs copies of mileage logs which include a reason for every journey and the postcodes of any start and end points.
HMRC has posted a message around the new rates on social media site X, ensuring motorists unaware of the update can take advantage of the new fees.
HMRC said: “You can now use our updated online form to claim the recently announced increased mileage rate if you use your own vehicle for work. Check your eligibility and submit your claim today.”
Individuals can make a claim for the current tax year and any of the four previous tax years. However, GOV.UK has stressed that this does not include travelling to and from work, unless it’s a temporary place of work.