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ExpensesUpdated 2026-10-19

How do I track mileage for business expenses?

Quick Answer

Record the date, start/end locations, purpose of trip, and miles driven for every business journey. Use a mileage tracking app or spreadsheet, and keep records for 6 years.

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Detailed Explanation

How to track mileage for tax purposes

Accurate mileage tracking is essential to claim your full entitlement at HMRC's approved mileage rates (55p/mile for the first 10,000 miles, 25p/mile thereafter).

What to record for each journey

  • **Date** of the journey
  • **Start location** (e.g., home, office)
  • **Destination** (client name and address)
  • **Purpose** of the trip (e.g., client meeting, delivery, site visit)
  • **Miles driven** (round trip or one-way, be consistent)
  • **Running total** for the tax year

Methods for tracking mileage

Method 1: Mileage tracking app (recommended) - Apps like MileIQ, Driversnote, or Fuelio - GPS-based automatic tracking - Easy categorisation of trips - Export reports for your accountant - Some integrate with accounting software

Method 2: Spreadsheet - Simple and free - Columns: Date, From, To, Purpose, Miles, Cumulative Total - Download templates from HMRC or accounting software providers - Back up regularly

Method 3: Paper mileage log - Old-school but acceptable - Keep in the car for immediate recording - Transfer to digital records regularly - Risk of loss or damage

Calculating mileage

  • Use Google Maps or similar for accurate distances
  • Record **actual miles driven** (not straight-line distance)
  • Round to the nearest mile
  • Be consistent: always round up or always round down

What counts as business mileage?

Claimable

- Travel to client sites - Trips to suppliers - Business meetings away from your usual workplace - Travel to temporary workplaces - Bank visits for business - Post office runs for business parcels - Travel between two work locations

NOT claimable

- Regular commute (home to usual workplace) - Personal errands - Travel that's not "wholly and exclusively" for business

The commute exception

- If you work from home and your home is your principal place of business, travel from home to client sites IS business mileage - But if you have a separate office, travel from home to that office is commuting

Calculating your claim

Example: 14,000 business miles in 2026/27 - First 10,000 miles x 55p = £5,500 - Next 4,000 miles x 25p = £1,000 - Total claim: £6,500

At 25% Corporation Tax, this saves: £1,625

Tips for maximising your mileage claim

1. Record every trip immediately - don't rely on memory 2. Include all legitimate journeys - many people under-claim 3. Passengers

Claim 5p/mile extra for each business passenger 4. **Combine trips

HMRC requirements

  • Keep records for **6 years**
  • Must be able to substantiate claims if audited
  • HMRC may ask for evidence of the business purpose
  • Digital records are acceptable (and preferred for MTD)

What if I don't keep records?

Without proper records, HMRC can: - Disallow the entire mileage claim - Assess additional tax plus penalties - The burden of proof is on you to show the mileage was for business

Source: HMRC Approved Mileage Rates and Record-Keeping

Real-World Examples

Client Meeting Mileage

You drive 60 miles round trip to meet a new client to discuss a potential project. Accurately recording the date, start/end locations (your office and the client's address), purpose (client meeting), and total miles (60) allows you to claim £33 (60 miles * 55p) as a business expense.

Temporary Workplace Visit

As a consultant, you regularly work from home but need to visit a client's office 80 miles away for a week. You record the journey's date, home address, client's office address, the purpose ('onsite project work'), and the miles driven (80 miles each way for a total of 160). This allows you to claim £88 (160 miles * 55p) for that day.

Claiming Mileage After 10,000 Miles

You've already claimed 9,500 business miles this tax year. A further 800-mile business trip is required. The first 500 miles will be claimed at 55p/mile (£275) and the remaining 300 miles at 25p/mile (£75), for a total claim of £350.

Common Mistakes to Avoid

  • Failing to record mileage at the time of the journey, leading to inaccurate recollections later.
  • Not distinguishing between personal and business mileage, which is crucial for accurate expense claims.
  • Using Google Maps or similar apps to estimate mileage after the trip without accounting for specific route changes.
  • Forgetting to keep mileage records for the required 6 years, which can hinder HMRC investigations.

What happens if I don't keep detailed mileage records?

Without proper records, HMRC may disallow your mileage claims, leading to a larger tax bill. HMRC expects accurate and contemporaneous records to support your expenses.

Can I claim mileage for commuting between my home and a permanent workplace?

Generally, commuting between your home and a permanent workplace is considered personal travel and is not an allowable business expense. However, there can be exceptions if it’s considered travel to a temporary workplace.

What if I use a fuel card – do I still need to track mileage?

Yes, you still need to track mileage, even if you use a fuel card. The fuel card covers the cost of fuel, but you need mileage records to claim the full mileage allowance (55p/25p) which includes wear and tear and other running costs.

If I have a company car, does the mileage rate still apply?

No, the mileage allowance of 55p/25p does *not* apply to company cars. Instead, you would claim back the actual cost of fuel incurred for business journeys. Accurate mileage records are still vital to calculate fuel-only reimbursements.

Practical Tips

  • Set a reminder on your phone or calendar to log your mileage immediately after each business trip to ensure accuracy.
  • Use a dedicated mileage tracking app that automatically records journeys and generates reports for easy expense filing.
  • Keep a physical notebook in your car to jot down mileage details as a backup to digital methods.
  • Regularly reconcile your mileage logs with your bank statements to ensure all fuel expenses are accounted for and match the business trips recorded.

Related Questions

What is the mileage allowance?

The Approved Mileage Allowance Payment (AMAP) is 55p per mile for the first 10,000 business miles and 25p per mile thereafter. This covers fuel and running costs.

What expenses can I claim through my company?

You can claim expenses that are 'wholly and exclusively' for business purposes. This includes travel, equipment, professional subscriptions, training, marketing, and business insurance.

Can I buy a car through my company?

Yes, but if you use it personally, you'll pay Benefit in Kind (BIK) tax based on the car's list price and CO2 emissions. Electric cars have the lowest BIK (4% in 2026/27).

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