Business mileage is an important – but often overlooked – expense for freelancers and contractors.

Claiming business mileage helps reduce your company profits, and therefore the amount of tax you pay at the end of the year. In short, claiming business miles is good news for you and your company.

The Government allows you to claim a rate per mile, depending on your mode of transport. Those that cycle will find mileage expenses especially beneficial – you can claim £0.20 per mile, and won’t incur the fuel and insurance costs of your car-driving counterparts.

All business mileage must be recorded on a standard form (although no proof of the journey is required, unlike other allowable expenses), and reported every year on your P11D. Here are the rates of business mileage expenses (per mile) allowed by the Government –

Mode of transport

First 10,000 miles

Over 10,000 miles

Car / van £0.45 £0.25
Motorcycles £0.24 £0.24
Bikes £0.20 £0.20

The best way to record your business mileage on a day-to-day basis is with a mileage expenses spreadsheet which, as luck would have it, you’ll find right here!

Get the business mileage expenses spreadsheet

Need to claim mileage from last year? Get the 2015/16 sheet.

Note there is no prescribed, HMRC-approved mileage claim form template. You just need to give the information to the taxman in a consistent, well-presented way. For this reason a standard expenses spreadsheet that logs all business mileage is always a good idea.

  • Al_Crook

    I’ve downloaded the business mileage expense spreadsheet 2017 – It tells me that the format & extension don’t match & that the file could be corrupt. If I open it & enter today’s date 11-Apr-2016 I get a message telling me that the date must be within the 2015-16 fiscal year. It says year ending Wednesday, April 5th, 2017.

    • We’ve updated the spreadsheet. Thanks for letting us know!

      • Al_Crook

        That’s great – Thank you