Knowledge Centre

If you use your own personal car, the following rates can be claimed for business journeys per tax year:

First 10,000 miles: Cars 45p, Motor bike 24p, Cycle 20p

Miles over 10,000: Cars 25p, Motor bike 24p, Cycle 20p

You must keep a log of the miles travelled, the purpose of each journey, date and time. This is easy to do on an excel spreadsheet and can add up to a significant tax saving.

At the end of each month you put the mileage allowance through your bookkeeping and make a bank transfer from your business bank account to your personal account.

NOTE: all fuel and car expenses should be paid for by you personally and not the business if you intend to use the mileage allowance rates.

Travelling by train, bus, plane, etc are also eligible travel expenses, always keep receipts for the journeys made. Using taxis for all or a substantial part of your travelling is not accepted by HMRC.