Basic Rules You Should Know

You can’t claim tax relief for normal commuting between your home and regular workplace. However, HMRC allows you to claim for business travel to other locations. This means if you’re traveling between different hospitals, attending training courses, or visiting patients at home, you can claim these costs.

Keep in mind that work-related parking fees and toll charges are tax-deductible, but parking fines and speeding tickets aren’t – even if you got them during a work journey.

How Much You Can Claim

HMRC has set clear rates for business mileage. When using your own car, you can claim 45 pence per mile for the first 10,000 miles, then 25 pence for any additional miles in the tax year. For motorcycles, it’s 24 pence per mile, and for bicycles, 20 pence per mile.

Let’s make this real: if you’re a doctor who drives 2,000 miles between different hospitals in a year, you could claim £900 (2,000 × 45p). If you pay higher-rate tax, this would save you £360 on your tax bill.

For electric or hybrid cars, these same rates apply. If you charge your electric car at home for business journeys, you can also claim the electricity costs, but you’ll need to work out how much power was used for business trips.

Keeping Records and Making Claims

Record-keeping is essential but doesn’t need to be complicated. For each business journey, write down the date, why you traveled, where you went, and how many miles you drove. A simple notebook or phone app will do.

If you’re a locum or self-employed, you have two choices. You can either claim the mileage rates mentioned above, or you can claim a portion of your actual car running costs. This includes fuel, insurance, road tax, MOT, servicing, repairs, and breakdown cover. If you choose this method, you’ll need to calculate what percentage of your car use is for business.

Some NHS trusts have their own mileage reimbursement schemes. If your trust pays less than the HMRC rate, you can claim tax relief on the difference. For example, if your trust pays 35 pence per mile and HMRC allows 45 pence, you can claim the 10 pence difference.

Making Your Claim

For employed NHS staff, claim through a P87 form. If you’re self-employed, include these expenses in your self-assessment tax return. Keep all records for at least six years in case HMRC asks to see them.

If you’re unsure about what you can claim, consider talking to a tax advisor who understands NHS employment. While this costs money, they can often help you claim expenses you might have missed and ensure you’re following the rules correctly.

Remember, claiming car expenses isn’t about avoiding tax – it’s about not paying more tax than necessary on the costs you incur doing your job. Many NHS staff miss out on legitimate claims simply because they don’t know what they’re entitled to claim. By understanding these rules and keeping good records, you can ensure you’re not out of pocket for using your car for work purposes.