When you're a self-employed individual or a company employee using your personal vehicle for work, you can claim back the cost of travel through HMRC's mileage allowance. But how long does it take for HMRC to process your mileage claim? Let's delve into the process and timeframes involved.
Before we discuss the processing time, it's crucial to understand that HMRC has set rates for claiming mileage allowance. These rates vary depending on the vehicle type and the number of miles traveled. As of 2021/22, the rates are 45p per mile for the first 10,000 miles, and 25p per mile for any additional miles.
Understanding the Mileage Claim Process
The first step in the mileage claim process is to keep a record of all business journeys, including the date, destination, mileage, and purpose of the trip. Once you've gathered this information, you can submit your claim to HMRC.
HMRC accepts mileage claims either annually or quarterly. If you're claiming annually, you'll submit your claim along with your Self Assessment tax return. If you're claiming quarterly, you'll submit your claim with your VAT return or through the HMRC online service for employers.
Submitting Your Claim
When submitting your claim, ensure you provide accurate and complete information. Incomplete or inaccurate claims can lead to delays or even rejection, extending the processing time.
For annual claims, you'll need to fill out the 'Motor expenses' section of the Self Assessment tax return. For quarterly claims, you'll need to fill out the 'Vehicle expenses' section of the VAT return or use the HMRC online service for employers.
HMRC Processing Time
Now, let's discuss the processing time. HMRC aims to process Self Assessment tax returns within 28 days of receipt. However, this can vary depending on the time of year and HMRC's workload. During peak periods, such as the Self Assessment deadline (January 31), processing times can be longer.
For VAT returns, HMRC aims to process claims within 15 working days. Again, this can vary, and during peak periods, processing times can be extended. If you're using the HMRC online service for employers, the processing time is typically faster, with payments being made within 5 working days.
Factors Affecting Processing Time
Several factors can affect the processing time of your mileage claim. These include:
- Accuracy and completeness of your claim
- HMRC's workload and peak periods
- The method of submission (online, post, etc.)
- Whether you've claimed previously and have any outstanding issues with HMRC
To ensure your claim is processed as quickly as possible, double-check your claim for accuracy, submit it online if possible, and avoid submitting during peak periods if you can.
In conclusion, while HMRC aims to process mileage claims within a certain timeframe, the actual processing time can vary depending on several factors. To ensure a smooth and timely process, keep accurate records, submit your claim online, and avoid peak submission periods. If you're unsure about any aspect of the process, don't hesitate to contact HMRC for guidance.