1. What is the Mileage Tax Calculator?

The Mileage Tax Calculator helps calculate tax deductions for business mileage in the UK. It uses the standard formula to determine the tax amount based on miles traveled and the applicable rate.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• \( Mileage \) — Number of miles traveled for business purposes
• \( Rate \) — Approved mileage rate in £ per mile

Explanation: The calculation multiplies the number of business miles by the approved mileage rate to determine the tax-deductible amount.

3. Importance of Mileage Tax Calculation

Details: Accurate mileage tax calculation is essential for claiming legitimate business expenses, reducing taxable income, and ensuring compliance with HMRC regulations.

4. Using the Calculator

Tips: Enter the total business mileage in miles and the approved mileage rate in £ per mile. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What are the current approved mileage rates in the UK?
A: Rates vary by vehicle type and business purpose. Check HMRC's latest guidelines for current approved mileage allowance payments (AMAP).

Q2: Can I claim mileage for commuting to my regular workplace?
A: No, regular commuting expenses are not typically tax-deductible. Mileage claims are generally for business travel beyond your regular commute.

Q3: Do I need to keep records of my business mileage?
A: Yes, you should maintain a detailed mileage log including dates, destinations, purposes, and distances for all business journeys.

Q4: Can self-employed individuals use this calculator?
A: Yes, self-employed individuals can use this to calculate business travel expenses for their tax returns.

Q5: Are there different rates for different types of vehicles?
A: Yes, HMRC typically has different approved rates for cars, motorcycles, and bicycles. Check current rates for each vehicle type.