Claiming Mileage On Taxes For Self Employed

Claiming Mileage On Taxes For Self Employed

Here is the information on claiming mileage on taxes for self employed that you have been looking for.

If you are self-employed and use your personal vehicle for business travel, it is important to claim a business mileage, since it reduces your tax bill.

HMRC requests the allocation of miles on its own and establishes strict rules on:

  • What you can claim
  • How much can you claim?
  • The records you must keep to support your mileage claim


Why Claim Back Mileage? 

The mileage allowance for self-employed employees not only reduces your tax bill, but it is also a tax-free claim from your company that covers fuel costs.

As well as, the expense and repairs of your vehicle.


How to Calculate Your HMRC Business Mileage Claim

You calculate your HMRC business miles claim by following these steps:

  1.   Add up the number of business miles you have travelled
  2. Multiply by  the rate of mileage allowance for self-employed workers established by HMRC

The mileage rates can change in the year so check info on mileage allowances.

You can claim miles on your tax return if you closely monitor your units during the year.

You have two options to deduct the costs of your vehicle: the standard rate per mile or the actual cost method.

With the standard rate per mile, you take a deduction of a specific amount for each business mile you drove.

Multiply your commercial mileage by the standard mileage rate for that year for your deduction.

In 2019, you can claim 45p per mile for the first 10,000 miles and 5p if you have a business passenger.


How to Claim Business Mileage from HMRC when you’re Self-Employed

You can claim your business mileage regularly or when you complete your self-assessment tax return.

You should keep a record of your business trip, so it may mean that it is better to claim business miles on a regular basis so that you do not forget anything that you would be entitled to claim.

You must record for each trip:

  • Date
  • Location
  • Miles travelled
  • The cause of the trip (for example, the name of the customer or supplier)


You can use a spreadsheet to track your business mileage.

This is a miles claim form template to help you get started.

If you use your personal vehicle on a regular basis, remember that you can complete your spreadsheet.

Or download a mileage app on your phone to record the mileage of the business with ease.

If you use accounting software a miles tracker may be included as part of your accounting application.

The mobile application tracks it as it travels, automatically calculating how many commercial companies it has the right to claim.

I hope you enjoyed this summary on claiming mileage on taxes for self employed.

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