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.

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The Government allows you to claim a rate per mile, depending on your mode of transport. Those that ride a bicycle 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 (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

Business mileage spreadsheet

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 2017/18 business mileage expenses spreadsheet

Need to claim mileage from previous years? Get the 2016/172015/16, and 2014/15 spreadsheets.

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.

All you need to know about business expenses

This free, handy business expenses guide will help limited companies understand what they’re entitled to claim in business expenses, so you won’t end up paying more tax than you have to.