Employers can reimburse workers up to 45 pence for every mile they drive their car for work up to 10,000 miles per year and 25 pence per mile thereafter. This is to help cover the costs of fuel, tax, insurance and vehicle maintenance, with the payments known as Mileage Allowance Payments.

But not all employers pay 45p per mile. If your employer pays less than 45p per mile, HMRC will pay you back some of the difference in the form of a tax rebate. 

Homecare Voices’ survey of 469 homecare workers showed that only 24% were paid 45p per mile. This suggests that around 3 out of 4 homecare workers may be eligible for a tax rebate on mileage owed.

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For years, claiming this rebate has caused a real headache for homecare workers. That’s because HMRC asks us to provide the start and end postcode for every journey we’ve done for work. As a result, a side-industry has emerged, with companies charging homecare workers to handle the process on their behalf. These companies are profiting from some of the lowest paid workers in society.

The good news is that HMRC has confirmed to Homecare Voices that we no longer need to provide all those postcodes. You simply need to provide a letter from your employer stating how many miles you have travelled for work (or your payslips for the year in question). If necessary, HMRC will confirm your mileage figures directly with your employer.​ This means claiming a tax rebate on mileage is now something that we can realistically do on our own.

Download our step-by-step guide below. This has been developed voluntarily by members of Homecare Voices for use by other homecare workers. Please note, you will require access to a printer. You can access a printer for a small cost per page at your local library.