How to Claim a Mileage Tax Rebate for PAYE Workers
If you drive your own vehicle for work and don’t get fully reimbursed by your employer, you could be entitled to a mileage tax rebate. Many UK workers miss out on hundreds, sometimes thousands, simply because they didn’t realise they could claim. In this guide, we’ll explain how mileage tax relief works, who qualifies, and how to claim back what you're owed.
What is a mileage tax rebate?
A mileage tax rebate is a refund from HMRC for work-related travel expenses you’ve paid for yourself. If your employer doesn’t reimburse you the full approved mileage rate (currently 45p per mile for cars, for the first 10,000 miles), you can claim the difference as tax relief.
This applies if:
You're employed and paid through PAYE
You use your own car or van for work
Your employer pays you less than 45p per mile (or nothing at all)
The journeys are business-related (not commuting to your regular workplace)
You can backdate your claim up to 4 tax years, which can add up to hundreds or even thousands of pounds.
Who qualifies for mileage tax relief?
You may be eligible if:
You’re a PAYE employee (not self-employed)
You use your own vehicle for work-related journeys
Your employer hasn’t fully covered the mileage rate
You keep a basic log of miles or can estimate your travel
This applies to many jobs including:
Tradespeople travelling between job sites
Healthcare workers doing home visits
Delivery drivers using personal vehicles
Construction workers travelling to temporary sites
Education or care staff working across multiple locations
How to claim your mileage rebate
Step 1: Check your eligibility
Use a trusted rebate service like TaxBax to confirm if you qualify. It takes 2 minutes.
Step 2: Provide mileage details
You’ll need to give an estimate or record of your work-related mileage. We can help calculate this based on your job type and travel patterns.
Step 3: Submit your claim
We handle the entire submission to HMRC and deal with all the paperwork.
Step 4: Get paid
Once HMRC approves your rebate, the money is paid directly to your bank account.
How much can I claim?
Rebates vary depending on your mileage, how many years you’re claiming for, and what (if anything) your employer already reimbursed.
Typical mileage rebates range from £300 to over £2,500.
FAQs
Can I claim mileage tax relief if I already get paid per mile?
Yes. If you receive less than 45p per mile, you can claim the difference.
Do I need receipts or logs to make a claim?
Not necessarily. If you don’t have exact records, we can help estimate your mileage based on job type and routine.
What journeys count for tax relief?
Any work-related journeys except your commute. For example, trips between job sites, client visits or temporary workplaces.
How far back can I claim?
You can claim up to 4 tax years if you were eligible during that time.
How long does it take to receive the rebate?
Most rebates are paid within 2 to 6 weeks of submission.
Ready to claim your mileage rebate?
TaxBax makes it fast, simple and stress-free.
