If you are reimbursed for business travel at rate below the HMRC approved rate (currently £0.45 per mile for the first 10,000 miles, £0.25 per mile for subsequent miles), MAR can be claimed on the difference. For example during 2014 the MOD reimbursed mileage at a rate of £0.25 per mile, therefore MAR can be claimed at a rate of £0.20 per mile.
HMRC have confirmed that serving personnel who receive Motor Mileage Allowance (MMA) for approved Business Travel are entitled to claim Mileage Allowance Relief.
Home to Duty (HDT) and Get You Home (GYH) Travel allowances will continue to be paid tax free and will only be eligible for MAR claims if the Temporary workplace rules are met. HMRC regard a ‘Temporary Workplace’ as a place an individual is required to attend for a period that is expected to last for 24 months or less.
In order to make a claim the key points to remember are:
- Claims apply to business travel in your own vehicle, not pool or hire cars
- You must claim on your self-assessment if you already complete one
- If your allowable expenses are under £2,500 for the tax year and you don’t already fill in a Self-Assessment tax return, you can claim using form P87.
- If your posting is for less than 24 months this counts as a temporary workplace and claims can be made, even if HDT or GYH Allowances have been received. You must declare the amount of HDT or GYH received, you will receive Mileage Allowance Relief on the difference between this and the HMRC approved Mileage rate.
- Claims can be back dated for the last four tax years if you have not previously claimed Mileage Allowance Relief for Business Travel or for travel to a temporary workplace. The tax year runs from 6th April one year to 5th April the following year.
- The amount of any tax relief received from HMRC will depend on your total income and personal allowances.
- Keep records of the dates and mileage and Assignment Orders to support your claim
If you require assistance with making a claim please contact firstname.lastname@example.org
More detailed information can be found on the Naval Families Federation website: http://www.nff.org.uk/news/1244-mileage-allowance-relief