HMRC Mileage Claim

The HMRC mileage claim allows claiming all specific expenses connected with driving personal vehicles for business purposes. A mileage claim provides relief on tax on a business journey in a car, whether that is a car, motorbike, van, or bicycle. If you travel for business in your vehicle, then you can claim tax relief based on HMRC mileage claim set rates for that kind of vehicle and then include the result as a cost in business accounts which will reduce the amount of profit the business will pay tax on. As self-employed, Mileage allowance from HMRC can be claimed for business purposes at a flat per-mile rate or claim actual business car expenses.

How to claim mileage back from HMRC

You can usually claim mileage tax relief on cars, vans, motorcycles, or bicycles that you use for business purposes. It applies to vehicles leased, owned and company vehicles. This tax relief is not for daily commutes between home and permanent workplace, but it includes temporary work while you travel while you are working. Figuring out how to claim mileage starts by checking the eligibility

General info about mileage deductions

Whether you are a sole trader or owner of a small company, running a business can involve travelling to different locations although keeping a track of all the trips can be tedious but all the trips can be added up. If you use your own vehicle or vehicles for work. You may be able to claim tax relief on the approved mileage rate. This covers the cost of owning and running a vehicle. You cannot claim separately for things like fuel, electricity, MOTs, Repairs, and road tax.

Steps on claiming mileage

a. Step one — have all documentation ready

Logging the business mileage is a good idea as it makes it easier to work out and claim mileage allowance and the claim is more likely to be accurate and credible if HMRC can see precise details of the dates, miles travelled, journey and reasons. HMRC can request proof during the investigation. It is ideal to record the details of business mileage after every journey. It is better to record and store the mileage on software or spreadsheet.

The HMRC does not allow estimating the mileage. It is ideal to track the mileage as soon as possible. Ideally, you will be tracking…