Mileage claim calculator

Every mile you drive for work has a value you can claim back, and over a year it adds up to real money. This calculator works out that claim at HMRC's approved rates. Here is how the rates work, what counts as a business mile, and how to keep it straight.

The HMRC mileage rates

HMRC sets flat rates you can claim per business mile, called Approved Mileage Allowance Payments (AMAP). They are meant to cover everything: fuel, wear and tear, insurance and servicing. The rate depends on the vehicle.

How the 10,000 mile threshold works

For a car or van, the higher 45p rate only covers your first 10,000 business miles in a tax year. Every mile above that is claimed at 25p. So 12,000 business miles is 10,000 at 45p (£4,500) plus 2,000 at 25p (£500), which is £5,000 in total. The count resets each tax year, and the threshold is per person, not per vehicle.

What counts as a business mile

A business mile is one you drive for work: out to a customer's site, between jobs, to the merchant for materials, or to quote a job. What does not count is your ordinary commute from home to a regular place of work. For most tradespeople who travel to different sites, the great majority of driving is business travel, but it is worth being clear on the line.

• Driving to a job or a customer's property: yes.
• Between two jobs in a day: yes.
• A trip to the merchant or supplier: yes.
• Home to the same yard or office every day: usually no, that's commuting.

Mileage method or actual costs?

As a sole trader you have a choice. You can use this simplified mileage method and claim the flat rate per business mile, or you can claim the actual running costs of the vehicle, a share of fuel, insurance, servicing, repairs and depreciation based on business use. The mileage method is far simpler and often works out well for high-mileage vans. You pick one method per vehicle and stick with it, so it's worth comparing before you commit.

Keep a mileage log

Whichever method you use, HMRC expects records. A simple log covers it: the date, where you went, the business reason, and the miles. Note trips as you go rather than trying to reconstruct a year from memory. A phone note or a notebook in the van is enough, as long as it's honest and complete.

Employed, self-employed, and passengers

If you're self-employed, you claim your mileage on your Self Assessment tax return as a business expense. If you're employed and your employer pays you less than the approved rate, you can claim the difference as Mileage Allowance Relief. There's also a small extra of 5p a mile for each fellow employee you carry on the same business trip, which applies to employees rather than sole traders. If your situation is a mix, check the current HMRC guidance for how it applies to you.

Where mileage fits in your numbers

Your van and the miles on it are a real cost of doing the work, and they should be reflected in what you charge. Whether you claim mileage or actual costs, make sure your running costs are built into your rate rather than quietly eating your profit. Work that out with the day rate calculator, and see where travel and overheads sit in a job's price in how to price a job so you actually make a profit.

Snapquo keeps the quoting and invoicing side quick so you spend less time driving to sort paperwork and more time on the tools. The mileage side stays with your bookkeeping, but getting your rate right is where the two meet.

This tool and guide are for general information and are not tax advice. HMRC rates and rules can change, and your situation may differ. Check the current guidance on GOV.UK or speak to a qualified accountant before you rely on a figure.