Business mileage rates – who can claim and how much does HMRC allow? Free business mileage claim form.

Business mileage rates – who can claim and how much does HMRC allow? Image of a driver on a dark night | Crunch
Picture of crunch software on mobile

Professional Bio Templates & Examples

Create a compelling professional narrative for a proper, attention-grabbing introduction.
Website bios
Speaker intros
Professional Profile

When you’re self-employed, either as a sole trader or the director of your own limited company, claiming business mileage is a bit of a no-brainer; as an allowable business expense, claiming business mileage means you can reduce the amount of tax you need to pay.

Recording your business mileage and understanding the records you need to keep can be a challenge for many new business owners, but it doesn't have to be.

If you're looking to claim business mileage as a limited company, or as a sole trader, let's discuss what business mileage is, what the current UK mileage rates are, how to make a mileage claim, and how Crunch can help you make claiming business mileage as a limited company easier than ever before.

Download our Free Business Mileage Claim form spreadsheet

Free business mileage claim form spreadsheet (2024/25)

Free business mileage claim form spreadsheet (2023/24)

Free business mileage claim form spreadsheet (2022/23)

Free business mileage claim form spreadsheet (2021/22)

What is classed as business mileage?

Business mileage covers the miles you travel for business purposes, such as travelling to a client. You must only claim for journeys that are “wholly and exclusively” for business purposes – your daily commute or any personal trips taken in your vehicle don’t count!

Business mileage is an expense which reduces your company or sole trade 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 business.

Who can claim business mileage?

Both sole traders and limited companies can claim business mileage. If you have an employee, they would be able to claim from you as their employer. If you don’t pay them business mileage, or you pay them less than the HMRC approved mileage rates, they can make a claim to HMRC at the end of the tax year for the difference.

How much can be claimed as business mileage?

It’s usually best to claim back your mileage using the HMRC approved mileage allowance payments (AMAP rates on Gov.uk). The AMAP rates include the general running costs of your car like maintenance and insurance.

Here are the current HMRC business mileage rates for cars, vans, motorcycles, and bikes:

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

*Only limited companies can claim business mileage for bikes – not sole traders

HMRC do not allow business mileage to be claimed by sole traders using a bicycle, which is rather unfortunate for those green-minded among you, or even cycle couriers. However, you may be able to claim the costs of buying a bicycle for work and consumables such as tyres or maintenance. Any personal use of the bicycle is likely to reduce the amount you can claim. It’s best to speak to an accountant or your local tax office to confirm what you can claim.

It’s important to keep a record of all business journeys you make as evidence to support any claim you make. Then, you'll be able to generate an estimated figure for the amount you'll pay using our mileage tax calculator.

What evidence is needed to claim business mileage?

Fortunately, it’s a pretty simple process. To ensure that you can claim back mileage as a sole trader, director, or for your employees, the following records should be kept:

  • A log of the date of each journey and location
  • The number of business miles covered.

How to calculate business mileage costs - use our free business mileage claim form spreadsheet

The easiest way to record your journeys and work out how much you can claim is on a business mileage claim form spreadsheet - ours is free and easy to use!

Download our easy to use mileage spreadsheet for the current and previous tax years that will record and calculate your business mileage in a professional format, making it easy to claim back. We recommend you establish a system of regularly recording expense claims and being paid back your costs from your business, perhaps on a monthly basis.

An HMRC inspection will involve checking that your entire expense claim system is fit for purpose. This means relevant receipts are retained to support corresponding claims, and the amount of expenses recorded in your company accounts or sole trader records match the amount claimed. It’s important you keep all relevant records whether it’s for you as the company director, a sole trader or an employee claiming mileage.

My new business hasn't got any funds to reimburse mileage expenses

It is often the way that, as a brand new business, you'll have expenses to pay before you've earned any money for the company. There are two possible options here regarding business expense claims:

  1. Wait until the business has generated the necessary income and then claim
  2. Introduce your own working capital into your business and then you can pay yourself back. It sounds a bit like robbing Peter to pay Paul, but the input of capital shows in the company accounts as a loan from the director to the company or as capital introduced by the sole trader to their business.

What are HMRC Advisory Fuel Rates?

HMRC Advisory Fuel Rates are the recommended amounts when you are reclaiming the fuel element on business mileage in a company car. HMRC reviews these rates every quarter. These rates only apply to Standard Rate VAT registered companies. They’re used to calculate:

  • The amount of VAT to reclaim on business mileage in a personal vehicle
  • How much employers can reimburse employees for business travel in their company cars
  • How much employees need to reimburse employers for private travel in their company cars.

From 1st December 2022, the Advisory Fuel rates are:

Engine size Petrol Diesel LPG Electric*
1,400cc or less 13p 10p 9p
1,600cc or less 13p 9p
1,401cc – 2,000cc 15p 11p 9p
1,601cc to 2,000.cc 15p 9p
Over 2,000cc. 23p 20p 17p 9p

* Fully electric cars only. Hybrid cars claim at the petrol or diesel rate. Electricity is not classed as a fuel for car fuel benefit purposes.

You can find previous rates at the Gov.uk website Advisory Fuel Rates page.

Using the advisory fuel rates above, you can calculate what percentage of the business mileage rate applies to fuel and calculate the VAT on that element. We have a Crunch Advisory Fuel Rates Spreadsheet that calculates the amounts for you.

How do Advisory Fuel Rates work in practice?

Example One – Reclaiming VAT on mileage

Jane bought petrol and travelled 100 miles in her own car with an engine capacity of 2500cc.

Based on an advisory rate of 23p per mile, £23 would be attributed to the fuel (out of the overall £45 mileage claim). As this £23 is VAT inclusive (that is, £23 equals 120% of the fuel cost), the VAT element is calculated by dividing the figure by 6 giving an amount of £3.83.

Example Two – Paying employer for private fuel on a company car

Jack made a round trip of 50 miles to see relatives in a diesel-engined company car with 1600cc capacity.

50 miles at an advisory rate of 13p per mile means Jack will be required to pay £6.50 for the personal trip.

Example Three – Claiming mileage on a company car

Helen bought diesel for her company car with an engine capacity of 1650cc, travelling 300 miles for work.

300 miles at an advisory rate of 15p per mile means the employer will reimburse Helen £45 for business miles.

Claim business mileage effortlessly with Tripcatcher

Whether you’re on the road every day or just make the occasional business trip, it pays to keep track of your mileage – you’ll reduce your tax bill and end up with more money in your pocket.

The good news is that this just got a whole lot easier. Crunch Pro and Premium clients can use Tripcatcher to accurately record and monitor their business mileage – at no extra cost. By integrating directly with your Crunch account, Tripcatcher does all the hard work for you.

You can log mileage via the Tripcatcher web app, but there’s also a fantastic mobile app available for iPhones/iPads and Android devices – great for recording mileage on the go.

Cut down on data entry

We think you’ll love Tripcatcher. It includes loads of great time-saving features, including the ability to create recurring trips if you travel between the same location over a set period of time. Simply enter the route and which days you made the journey – Tripcatcher will do the rest.

Claim the correct mileage

Not sure how far you’ve travelled? Simply bash in the ‘to’ and ‘from’ postcodes – Tripcatcher will then use Google Maps to plot the route and work out the mileage. If you’re using the mobile app, you can enable GPS tracking to automate the whole process.

Get started today

Can’t wait to get started? If you're a Pro or Premium client, head over to your Crunch account, go to the ‘Subscription’ section under ‘Your Account’ and find the Tripcatcher tile. Under Tripcatcher, select ‘Activate’. You’ll just need to create a password for Tripcatcher (the email you use for Crunch will be pre-populated).

Don’t forget, Tripcatcher is free to all Crunch Pro and Premium limited companies clients, so you won’t have to pay a penny extra to use it.

If you choose not to use Tripcatcher, you can still record your mileage in Crunch by following the business mileage instructions in our Crunch Help Centre.

Crunch Business mileage spreadsheet

If you’re a Crunch limited company Pro or Premium client, our Tripcatcher app is the best way to log record and upload business mileage to our system. If you’re not yet a Crunch client, the best way to record your business mileage on a day-to-day basis is with a business mileage expenses spreadsheet which, as luck would have it, you’ll find right here!

Download our Crunch Free Business Mileage spreadsheet

Free business mileage claim form spreadsheet (2024/25)

Free business mileage claim form spreadsheet (2023/24)

Free business mileage claim form spreadsheet (2022/23)

Free business mileage claim form spreadsheet (2021/22)

Finally, please note that there’s 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, like ours, is always a good idea.

guide cover for "8 great ways accountancy can help your ecommerce business"

Unlock your free ecommerce business guide!

Expert Insights
Actionable Tips
Strategic Advice

To receive our guide on valuable insights into the world of expenses for limited companies please submit your details below.

Please enjoy our guide on 8 Ways Great Accountancy Helps ecommerce Businesses Succeed.

Click below to download our PDF guide.
Oops! Something went wrong while submitting the form.

By submitting you are agreeing to be contacted by Crunch.

Speak to an accounting expert

If you're unsure what level of support you need, our friendly team are on hand to help you pick the right package for you.
Self Assessment tax returns done for you, from just £200 £130+VAT
Take the stress out of Sole Trader Accounting, for just 1%+VAT of your money earned. No monthly subscriptions! With CrunchONE
Get 25% Off Crunch Pro and Premium for the first 3 months!
Share this post
Lucinda Watkinson
Head of Accounting
Updated on
April 22, 2024

Knowledge Hubs

Take control of your accounts, today

Crunch’s effective software package includes being able to talk to an expert client manager and a Chartered Certified Accountant. You can count on Crunch to make you productive and profitable.
Picture of crunch software on mobile

Professional Bio Templates & Examples

Create a compelling professional narrative for a proper, attention-grabbing introduction.
Website bios
Speaker intros
Professional Profile

Unlock Your Free Limited Company Expense Guide!

Expert Insights
Actionable Tips
Strategic Advice

Save your seat! Live e-commerce webinar

Register and soak in the wisdom from top industry leader! June 27, 2024 1:30 PM
Dive into e-commerce basics
Expert industry insights
Practical tips and savvy tricks
Pro Tip
Looking for a dedicated accountant?

Our Enterprise packages offer tailored support for you and your business. You can focus on your business, we'll crunch the numbers.

Pro Tip
Boost your business finances with our Ltd Company packages!

Award-winning software with support from expert accountants

Pro Tip
Take the stress out of Sole Trader Accounting

Just 1%+VAT of your money earned. No monthly subscriptions! With CrunchONE

Pro Tip
Get 50% off your Self Assessment

Get your tax return sorted by experts for only £130+VAT!

Pro Tip
Using cloud-based accountancy software to manage your finances gives any small business a big advantage!

At Crunch we provide affordable cutting-edge, easy-to-use software with real human support from expert chartered accountants. That’s probably why 81% of our clients would recommend Crunch.

Pro Tip
Did you know - you have access to a Chartered Certified accountant for free on our paid subscriptions?

Book a call with our one accountants and get your questions answered. Just £25.50 +VAT for Crunch Free users.

Pro Tip
Get 35% off your Tax Return!

Crunch’s Self Assessment service provides an expert accountant to complete, check, and file your Self Assessment for you for just £130 +VAT.

Pro Tip
Did you know - We have a free plan that is great for sole traders and limited companies?

Why not see for yourself? It’s simple and easy to use and 100% free.