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Sam, Accountant
Category: Tax
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Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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i travelled 25,000 business miles last year and was paid 20p

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i travelled 25,000 business miles last year and was paid 20p per mile (minus 20% deduction from contractor) how do i claim the extra 25p for 10000 miles and 5p for the 15000 miles on my online self assessment?

Thanks for your question. I am Sam and am one of the UK tax experts here on Just Answer.

Assuming this is all genuine business mileage

Can you advise whether
1) you were an employee or a subcontractor within the Construction Industry scheme, so I can advise where on the self assessment return the claim should be made
2) Clarify the 20% deduction position, as usually business mileage when paid, (both as an employee or subcontractor) is not subjected to tax. So I do need you to double check this, as usually its just the pay that would be subject to tax, and then any expenses claim paid gross without any deduction of tax (when deemed to be all business mileage.



Customer: replied 3 years ago.

1. i was an sub contractor within the cis scheme


2. yes i have been deducted 20%


for example on my statement of deduction from the contractor


gross amount paid (excl vat) £854.60


amount liable to deduction @ standard rate £854.60


amount deducted £170.92


amount payable before non taxable deductions £683.68

Hi Chris

Thanks for your response

Then you make the claim on the self employment page - under the motor expenses and as you have been subjected to 20% tax on the 20p a mile (which you should not have been - as this meant you did not get the benefit of it being a business expense And will be showing your total income as your pay PLUS the mileage allowance paid ) youthen are permitted to make a complete claim or ALL mileage
The HMRC rates for using your own vehicle -
10,000 miles x 45p = £4500
and £15,000 miles x 25p = £3750
Total claim £8250
Which will generate a tax credit of £1650 - which is the £8250 x 20% ( which can cover some of the Class 4 National Insurance that will arise, and may also leave enough to create a refund in your pocket too!)

But I can advise whoever runs the payroll is doing this wrong - the mileage can and should be paid WITHOUT deduction of tax. Might be worth raising this for this current tax year



Customer: replied 3 years ago.

Sorry im abit unsure what you mean.


My gross income was 33,539.04


if i claim £8250 in the motor expenses that will reduce my net profit?


Yes it will reduce your net profit - but as you declare your income and the tax suffered, then claim the business mileage at the amount of £8250 - then the tax is recalculated to allow the business mileage (and have the affect of saving you tax to the tune of £1650 which when deducted from the tax you have suffered may create a tax refund) but then you have to add back in the Class 4 National Insurance due (which is taxable on profits in excess of £7755 for 2013/2014 at the rate of 9%) and then the overall position will see you either
1) owed a refund or
2) Still owing HMRC some money due by 31.01.2015 -




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