How do I claim my mileage?

How to manage your vehicle running costs.

Enzo avatar
Written by Enzo
Updated over a week ago

HMRC allows sole traders to claim vehicle expenses at a flat rate of 45p a mile. That applies for the first 10,000 miles a year. After that, it's 25p a mile. If you're using a motorcycle, it's 24p a mile.

As an example, imagine you’ve driven 11,000 business miles over the year. You'd calculate the expense as follows:

  • 10,000 miles x 45p = £4,500

  • 1,000 miles x 25p = £250

  • Total you can claim = £4,750

We do not yet have a mileage tracker in the app, so you'll need to keep track of the miles you do for work. At the end of the tax year, month or week, you can follow the approach above to calculate an allowable value. Add that value as a single manual expense at the end of the period in Earnr.

Notes on the simplified approach

If you're using the simplified approach, you should not claim any expenses relating to the purchase or running of your vehicle. This includes fuel and servicing. You can still claim other travel expenses such as tolls, parking or other fares.

If your vehicle expenses are greater than the flat rate value, you may capture your business vehicle expenses in Earnr as you incur them. There are some restrictions on what's accepted here, for example, the purchase of a car is never an allowable expense.

Whichever approach you choose, stick with it, it's not possible to change from one to the other.

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