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How do I keep a record of my business mileage?

What is Mileage?

If a vehicle is under personal ownership you can claim a fixed mileage allowance, set by HMRC.

The mileage allowance is set by HMRC and is designed to be a reflection not just of fuel but also the cost of servicing, tyres, car tax, insurance, depreciation and even the interest on any loans taken out to buy the vehicle.

To claim the mileage the vehicle must be owned personally: see our advice on personal vs company ownership here. (If you need to record the cost of fuel for a company car, see here). Furthermore, the mileage must have been incurred on a qualifying business journey: the rules on what qualifies are very strict and can be seen here.

What are the rates?

Mode of transport First 10,000 miles Over 10,000 miles
Car / van £0.45 £0.25
Motorcycle £0.24 £0.24
Bicycle £0.20 £0.20
 

(If you are travelling by car or van, you can also claim an additional five pence per mile for any passengers travelling with you, providing the passengers are employed by the same company as the driver.) 

How do I record my mileage in Crunch?

To record your mileage in Crunch, you first need to calculate your allowance.

Remember, that if you are using a car or van, the rate changes after 10,000 miles of travel in that year.

Once calculated, you have 2 options - you can either use a spreadsheet to log the miles travelled or our mileage tracking app, Tripcatcher, which can be downloaded for free on both Android and Apple devices - it's also completely free. Find out more here

If you use the spreadsheet you can  download it as an attachment at the bottom of this page and helps you calculate how much you can claim. The spreadsheet will do the calculations for you, but more importantly it will also keep track of how much you have claimed for in the current tax year, and therefore you can know when you go over the 10,000 mile mark and the rate drops to 25p per mile.

Next, create a new supplier under the “Suppliers” tab, and call this supplier "Business Mileage".

Navigate to the “New Expense” screen and enter the expense type as Motor Expenses> Mileage Allowance.

If you’re using a car or van, £0.45 (or £0.25) per mile multiplied by the number of miles will give you the figure you should enter into Crunch as the Gross total of the expense.

 

 

As the vehicle is owned personally it is very important that payment is recorded as Paid by director personally.

 

 

As you are the owner of the vehicle the business will need to reimburse you personally. This can be recorded as a director’s withdrawal.

 

Mileage Recorder Spreadsheets:

Last Updated: 11 Oct 2017 10:09AM BST
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