Quick answer:
Yes, if you’re self-employed you can claim business mileage as an allowable expense, using either HMRC’s simplified mileage rates (a set amount per business mile) or by claiming the actual running costs of your vehicle apportioned by business use, but you must pick one method per vehicle and stick with it.
Business travel is a valuable deduction that’s easy to under-claim. Here’s how it works.
What are HMRC’s simplified mileage rates?
The simplest method is HMRC’s flat mileage rate: you claim a set amount per business mile, which covers fuel, insurance, servicing and wear. There’s a standard rate for the first portion of business miles in a year and a lower rate above that threshold, with a separate rate for motorcycles. You just record your business miles and multiply. This sits within your allowable expenses for the self-employed.
What journeys count as business mileage?
Travel wholly and exclusively for business qualifies, visiting clients, suppliers, jobsites, or other temporary workplaces. Your ordinary commute to a regular workplace generally does not count. Keeping a simple log of date, destination, purpose and miles is essential.
Actual vehicle costs
Alternatively, you can claim the actual costs of running your vehicle (fuel, insurance, repairs, and capital allowances on the vehicle), apportioned by the percentage of business use. This can be worth more for expensive vehicles or high running costs, but requires far more record-keeping.
Which method should you choose?
Once you use the simplified mileage rate for a vehicle, you generally must keep using it for that vehicle. The flat rate is simpler and suits most; actual costs suit those with high vehicle expenses who don’t mind the admin. Choose carefully and keep records either way, see digital record keeping for HMRC.
How does mileage work under MTD?
Mileage is reported within your allowable expenses in quarterly updates and finalised at the final declaration. Logging journeys consistently keeps your figures accurate, see what goes in an MTD quarterly update.
How CleanBooks AI helps with mileage and travel
CleanBooks AI keeps your travel and vehicle expenses categorised within your digital records, with Keeva™ flagging relevant transactions, so your business travel is captured rather than forgotten. Your live tax estimate reflects the deduction immediately. Avoid leaving this money on the table, it’s a classic miss in bookkeeping mistakes sole traders make.
Claim every business mile. Track travel with CleanBooks AI free, 6 months free, no credit card.
