If you’re travelling when doing business, you’ll probably want to claim mileage expenses. This can be done in two different ways. Firstly, if you’re operating under your own Limited Company you can claim tax-deductible mileage expenses (more information on this in our Guide to Limited Company Expenses). Alternatively, you can negotiate mileage allowances with a client as part of your contract, for example if they are insisting you work on-site, and you have to drive to their offices every day.
The Government dictates rates for different types of transport, which you will find are also used as a guide by many corporations for expenses claims (although many will offer a lower rate – always confirm a companies mileage rates before you sign a contract). The rates for 2011 are -
Travel by Car - £0.45 per mile (£0.25 over 10,000 miles)
Travel by Motorcycle – £0.24 per mile
Travel by Bicycle – £0.20
But how do you claim these expenses? Unless you use some kind of tracking App – showoff that you are – the best way to record mileage is in a good old-fashion spreadsheet. Work out how many miles you travelled, multiply it by the appropriate allowance (either those above or those supplied by your client) and record it, along with the date and any pertinent details.
Our good friends at Crunch Accounting have supplied us with a ready-made, Accountant-approved mileage spreadsheet.
Download the Mileage Spreadsheet here (.xls format)