Our 5-minute read – Tax Tips – for UK doctors and dentists will help you save tax, get organised with your tax affairs and make sure you meet important deadlines with ease.
This article does not constitute advice. Professional advice should be taken prior to acting on any part of it. The Financial Conduct Authority does not regulate tax advice.
There’s a plethora of tax relief schemes available in the UK, and our Tax Tips support our mission to ensure you’re taking advantage of all that the government has to offer to tax paying citizens. Many employees, and even self-employed workers, might not realise the relief they can get for work related expenses as long as their records are in order.
Did you know…
If you use your own vehicle for work, you could be eligible for a tax exemption on a previously established mileage allowance. For example, in one tax year you can get 45 pence per mile for the first 10,000 miles, and 25 pence for every mile after that (ITEPA 2003, s 230).
The mileage allowance relief (MAR) is also available even if you receive lower allowance payments than ITEPA dictates, but the amount you’re entitled to is based on the difference between the total mileage payments from the employer in comparison to the pre-approved figure.
There is a degree of flexibility and some useful loopholes you can utilise with this scheme. For instance, as long as the journey is for business purposes and even if the company has offered the use of their vehicle, you can claim on the mileage that you put on your own car, or even on your spouse’s car. You’re even in luck if you failed to claim from your employer.
The firm requirements in place relate only to the fact that you must use your car and you must use it for business travel – this does not include regular commuting nor does it include, quite rightly, personal use.
Remember to document your business mileage
Because this benefit is quite open, it’s important you keep meticulous records so that in the event of an audit, you have all your proof at the ready.
Make sure you document every aspect of your travel – annual and daily mileage for a start and any other evidence you think would back up your claim.
HMRC may also request MOT certificates to confirm mileage has taken place so be sure to keep those in a safe place.
The next step is to prove the mileage was in fact related to business travel so a logical record to keep would be a business mile log – again with any further evidence that helps your case.
We’re here to help
We realise that the intricacies of this tax relief might be a lot to wrap your head around but it’s an important benefit to take advantage of.
You should never foot the bill for business related expenses, especially if you use your own vehicle during a work trip and inflict wear and tear that needs covering.
If you need assistance working out if you’re eligible to claim business related travel expenses, we’re here to help guide you.