Can I Claim Mileage and Travel Under CIS?

CIS workers can claim mileage and travel expenses to reduce their tax bill. Learn what journeys qualify, how to calculate claims, and what records to keep for HMRC.

Introduction

If you work in the construction industry and are registered under the Construction Industry Scheme (CIS), you can claim certain expenses to reduce your taxable income. One of the most common questions self-employed tradespeople and subcontractors ask is whether they can claim mileage and travel costs.

The answer is yes — in most cases, you can claim travel and mileage expenses under CIS, as long as the journeys are wholly and exclusively for business purposes. This article explains what types of travel you can claim, how mileage claims work, and what records you need to keep for HMRC.

Understanding Travel Expenses Under CIS

As a self-employed subcontractor, you are responsible for your own tax and National Insurance, and your CIS deductions count as advance tax payments. When you complete your Self Assessment tax return, you can claim expenses for any business-related travel.

These claims reduce your taxable profit, which means you will pay less Income Tax overall.

You can claim for:

  • Journeys to and from temporary work sites.

  • Travel between different work locations on the same day.

  • Parking fees and tolls.

  • Public transport costs if you do not use your own vehicle.

However, you cannot claim for:

  • Travel between your home and a permanent work location.

  • Fines or penalties for parking or speeding.

  • Non-business-related journeys, such as personal errands.

Claiming Mileage for Your Own Vehicle

If you use your own car, van, or motorcycle for work, you can claim mileage expenses instead of claiming for fuel, insurance, and maintenance separately. HMRC sets fixed rates for mileage claims, known as approved mileage rates.

For the 2024 25 tax year, the rates are:

  • 45p per mile for the first 10,000 miles.

  • 25p per mile after 10,000 miles.

  • 24p per mile for motorcycles.

  • 20p per mile for bicycles.

These rates cover all vehicle-related costs, including fuel, repairs, road tax, and depreciation, so you cannot claim additional amounts for those items if you use the mileage method.

Example:
Ben is a self-employed electrician registered under CIS. He drives his van 8,000 business miles during the tax year.

  • 8,000 miles × 45p = £3,600.
    Ben can claim £3,600 as a mileage expense on his Self Assessment return.

If he drives 12,000 miles, he would calculate it as:

  • 10,000 × 45p = £4,500.

  • 2,000 × 25p = £500.

  • Total claim = £5,000.

Claiming Actual Vehicle Costs

Instead of using mileage rates, you can choose to claim the actual costs of running your vehicle. This includes fuel, servicing, repairs, insurance, and road tax.

However, if you also use the vehicle for personal purposes, you can only claim the business-use percentage. For example, if 70% of your driving is for work, you can only claim 70% of your total vehicle costs.

Many CIS workers find that using mileage rates is simpler and often more tax efficient, as it requires less record keeping and calculations.

Public Transport and Other Travel Costs

If you use public transport for work, such as trains, buses, or taxis, you can claim the full cost of your tickets as long as the journey was necessary for business.

You can also claim for:

  • Parking fees while working at a client’s site.

  • Congestion charges for work-related journeys.

  • Overnight accommodation if you are working away from home.

  • Meals while travelling for work (known as subsistence).

Keep receipts or digital copies of all these expenses to support your claim.

What Counts as a Business Journey

HMRC defines a business journey as one made wholly and exclusively for business purposes. This means the trip must be directly related to your work, not personal travel.

You can claim travel expenses for:

  • Visiting temporary construction sites.

  • Collecting materials or tools from suppliers.

  • Travelling between multiple sites in one day.

  • Attending training courses or trade meetings.

You cannot claim for:

  • Journeys between home and a regular or permanent workplace.

  • Detours for personal reasons (such as shopping or visiting family).

Keeping Accurate Records

To claim travel and mileage expenses under CIS, you must keep detailed and accurate records. HMRC can ask to see evidence of your claims if they review your tax return.

Your records should include:

  • The date of each journey.

  • The purpose of the journey (for example, “travel to client site in Leeds”).

  • The start and end location.

  • The mileage or travel cost.

  • Receipts or invoices for public transport, parking, or tolls.

Using a mileage logbook or digital app makes it easier to record your journeys. Many accounting apps can automatically track mileage using GPS, which saves time and ensures accuracy.

Travel and CIS Deductions

If you are a CIS subcontractor, your contractor deducts tax from your payments at 20% or 30% before you are paid. When you file your Self Assessment, you can include all allowable travel and mileage expenses. These reduce your taxable profit, which means you may get a tax refund if too much has been deducted under CIS.

Example:
Maria works as a CIS-registered plumber and earns £30,000 in the tax year. Her contractor has already deducted £6,000 in CIS tax. She claims £4,000 in travel expenses for fuel and mileage.

Her taxable profit falls to £26,000, meaning she owes less tax and qualifies for a refund from HMRC.

Common Mistakes to Avoid

  • Claiming for personal travel: Only claim for journeys that are strictly work related.

  • Forgetting to keep records or receipts: HMRC can disallow claims without proof.

  • Claiming for both mileage and actual costs: You must choose one method per vehicle.

  • Failing to include subsistence correctly: Only claim for meals or accommodation when working away from home.

The Role of an Accountant

An accountant experienced in CIS can help you:

  • Work out which travel expenses you can claim.

  • Calculate the best method for your vehicle costs (mileage or actual expenses).

  • Complete your Self Assessment correctly to maximise your tax refund.

  • Keep your records compliant with HMRC’s requirements.

They can also check that you are not missing other allowable deductions, such as tools, training, or insurance.

Example Scenario

Jake is a CIS-registered bricklayer. He drives 9,000 miles a year to temporary building sites and occasionally takes the train to distant projects. His accountant helps him track all travel using mileage rates and adds his train tickets to his expense list.

By claiming mileage, public transport, and parking costs, Jake reduces his taxable income by over £4,500. The result is a lower tax bill and a refund on his CIS deductions.

Conclusion

Yes, you can claim mileage and travel expenses under CIS if the journeys are for business purposes. You can either use HMRC’s mileage rates or claim actual vehicle costs, depending on which gives the best result.

Keeping detailed records of every trip, receipt, and cost is essential to support your claim. Working with an accountant familiar with CIS ensures your expenses are claimed correctly, helping you maximise your tax refund and stay fully compliant with HMRC.