HMRC £3,000 per Year Tax Refund: Millions of UK workers could be missing out on a £3,000 annual tax refund from HMRC. If you travel for work using a car, van, motorcycle, or even a bicycle, you may be eligible for a mileage tax refund and subsistence relief. However, many employees are unaware of these underused tax benefits.
This guide explains who qualifies, how much you can claim, and how to apply for this valuable tax relief.
Who Can Claim the HMRC Mileage Tax Relief?
HMRC allows tax relief for employees who use their own vehicle for work-related travel. However, this does not include commuting from home to your regular workplace.
You can claim if you:
- Use your own car, van, motorcycle, or bicycle for business travel
- Travel between different work locations or visit customers as part of your job
- Have not been fully reimbursed by your employer for travel expenses
You cannot claim if you:
- Travel between home and your regular workplace
- Use a company-owned or leased vehicle (unless claiming fuel costs)
How Much Can You Claim
1. Mileage Relief
You can claim tax relief on every mile you travel for business purposes:
- Car or van → 45p per mile (for the first 10,000 miles) and 25p per mile thereafter
- Motorcycle → 24p per mile
- Bicycle → 20p per mile
Example: If you drive 10,000 miles for work in a year, you can claim £4,500 in expenses.
2. Subsistence Relief (Food & Drink Expenses)
Any food or drinks bought while travelling for work can also be claimed as a tax-deductible expense.
On average, workers save £1,000 per year using this relief.
3. Combined Tax Savings
With mileage relief (£2,000) and subsistence relief (£1,000), you could save up to £3,000 a year in tax refunds.
How to Claim Your Tax Relief
You can claim tax relief for:
The current tax year
The past four tax years (if you haven’t claimed before)
Steps to Claim:
- Keep Records – Track your business mileage, fuel costs, and receipts for food/drink expenses.
- Check Employer Reimbursements – If your employer reimburses some travel costs, you can claim relief on the difference.
- Submit Your Claim Online – Visit the HMRC website and fill out a P87 form or use your Personal Tax Account.
- Claim via Self-Assessment – If you’re self-employed or file a tax return, claim through your Self-Assessment Tax Return.
If you travel for work, you might be missing out on thousands of pounds in tax relief each year. Mileage tax relief and subsistence relief allow employees to offset travel expenses, reducing their tax burden significantly.
By keeping proper records and claiming your tax refund, you can boost your savings by up to £3,000 a year. Don’t leave money on the table—check your eligibility and claim today!
FAQ
Who can claim mileage tax relief from HMRC?
You can claim if you use your own car, van, motorcycle, or bicycle for work-related travel, excluding home-to-work commutes.
How much can I claim for mileage tax relief?
You can claim 45p per mile for cars and vans (up to 10,000 miles), 24p per mile for motorcycles, and 20p per mile for bicycles.
What is subsistence relief?
Subsistence relief allows you to claim tax deductions for food and drink expenses incurred during work-related travel.
How far back can I claim tax relief?
You can claim for the current tax year and up to four previous tax years if eligible.
How do I apply for the HMRC mileage tax refund?
Submit a claim via HMRC’s online portal, using a P87 form, or through your Self-Assessment Tax Return if self-employed.
Can I claim if my employer reimburses me for travel?
If your employer reimburses part of your expenses, you can claim tax relief on the difference.
