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The Importance of Mileage Claims

Always on the road or just for the occasional business trip? Either way, keep track of your mileage and reduce your tax bill.

 

Who can claim business mileage?

Limited companies and Sole Traders (under certain conditions) can claim business mileage. Employees can also claim from you as their employer.

 

Personal Cars – Mileage Allowance Payments

Mileage Allowance Payments (MAPs) are what you pay your employee for using their own vehicle for business journeys.

You’re allowed to pay your employee a certain amount of MAPs each year without having to report them to HMRC. This is called an ‘approved amount’.

 

Work out the value

To calculate the ‘approved amount’, multiply your employee’s business travel miles for the year by the rate per mile for their vehicle, or use HMRC’s MAPs working sheet.

 

Tax: current rates per business mile
First 10,000 miles Above 10,000 miles
Cars and vans 45p 25p
Motorcycles 24p 24p
Bikes 20p 20p

*Only limited companies can claim business mileage for bikes

 

Company Cars – HMRC Advisory Fuel Rates

These are the recommended amounts when you are reclaiming the fuel element on business mileage, and only apply to Standard Rate VAT registered companies with company cars.

Use the rates when you either:

  • reimburse employees for business travel in their company cars
  • need employees to repay the cost of fuel used for private travel in their company cars

 

Current Rates
Engine size Petrol — rate per mile
1400cc or less 13 pence
1401cc to 2000cc 15 pence
Over 2000cc 22 pence

HMRC review rates quarterly on the 1st of March, June, September and December.
Find the latest rates for all fuel types here.

 

Keeping Records

It’s important to keep a record of all business journeys you make as evidence to support any claim you make. You’ll need:

  • The date and location of each journey
  • The number of business miles covered
  • If it’s a personal or company car
  • The driver
  • Vehicle type
  • Vehicle engine size
  • Fuel Type

 

We recommend establishing a system of recording expense claims and costs paid back from your business on a monthly basis.

Let us know if you have any questions, if you’d like us to take care of the P11D forms, or if you need assistance with your mileage claims. We’re here to help.

 

 

MATCH is working hard to keep on top of all the latest news and government support so, as always, feel free to get in touch if you have any queries and we’ll be happy to help.

 

MATCH Accounting Limited