How to claim motor expenses if you're self-employed 🚗
Updated: Dec 8, 2021
Should you claim actual motoring costs (fuel, insurance, repairs etc) or claim the 45p mileage rate against your self-employed profits? As a general rule of thumb: Van drivers are better off claiming for actual costs. If however you use your family car for some business use you're probably better off claiming mileage 👍
HMRC's 2 min. video summaries this nicely:
Currently HMRC allow a claim of 45p per business mile as long as your business journeys are recorded via a mileage log (the rate falls to 25p per mile after the first 10,000 miles).
Importantly your mileage log should include: Date, start-point, destination, purpose of journey and the number of miles travelled all business records these should be kept for a minimum of 6 years + the current tax year. There are apps that will help record your business mileage (e.g. Xero bookkeeping includes it's own expense/mileage apps) or feel free to download and use our simple Excel based template.
Would you like help to pay less tax? Feel free to get in-touch or check-out our related posts 👇.