# How do I track mileage for business expenses?

Last updated: 19 October 2026
Category: 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.

## 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**

1. **Date** of the journey
2. **Start location** (e.g., home, office)
3. **Destination** (client name and address)
4. **Purpose** of the trip (e.g., client meeting, delivery, site visit)
5. **Miles driven** (round trip or one-way, be consistent)
6. **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**: Even if you do personal errands en route, the business mileage is still claimable
5. **Review monthly**: Spot any missed trips while memory is fresh

**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.

## Frequently asked questions

### 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?](https://accounts-os.com/questions/what-is-the-mileage-allowance)
- [What expenses can I claim through my company?](https://accounts-os.com/questions/what-expenses-can-i-claim-through-my-company)
- [Can I buy a car through my company?](https://accounts-os.com/questions/can-i-buy-a-car-through-my-company)