From understanding expenses to starting a limited company, our downloadable business guides can help you.
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 (per mile) allowed by the Government –
Mode of transport
First 10,000 miles
Over 10,000 miles
|Car / van||£0.45||£0.25|
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 2018/19 business mileage expenses spreadsheet
Note 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 is always a good idea.
We’re fast approaching the end of the tax year on 5th April, and now is usually a good time to get to grips with any tax changes, so you can maximise your tax efficiency for the outgoing tax year and get your business prepared for the new tax year. You’ll also want to stay up-to-date with the rates and thresholds.
The UK has many different tax rates affecting both individuals and businesses - and as a business owner you’ll be affected by all of them. At Crunch we like to be helpful so we've pulled together all the rates you need to know about for the 2018/2019 tax year, so that you can keep on top of everything.