How Do I Record Mileage and Travel Expenses

At Towerstone Accountants we provide specialist personal tax services, for self employed, and individuals across the UK. This article has been written to explain How do I record mileage and travel expenses, in clear practical terms, so you understand how personal tax and Self Assessment rules apply in real situations. Our aim is to help you stay compliant, avoid costly mistakes, and make confident tax decisions.

From experience, mileage and travel expenses are one of the most common areas where people either underclaim or get things wrong. I see this every year with self employed individuals, directors, and small business owners who are either unsure what counts, unsure how to record it properly, or worried about getting it wrong and triggering HMRC questions. The reality is that recording mileage and travel expenses is straightforward once you understand the rules and put a simple system in place.

In this article, I want to explain clearly how to record mileage and travel expenses correctly under UK rules. I will cover what counts as allowable travel, how mileage claims work, what records HMRC expects you to keep, and the common mistakes I regularly see. The aim is to help you claim what you are entitled to, stay compliant, and avoid unnecessary stress later on.

What HMRC means by business travel

The starting point is understanding what HMRC considers business travel. In simple terms, travel is allowable if it is wholly and exclusively for business purposes. That phrase matters, because commuting and personal travel are treated very differently.

From experience, allowable business travel typically includes:

• Travelling to visit clients or customers

• Travelling between different work locations

• Travelling to suppliers, meetings, or training directly related to your work

• Travel to temporary workplaces

What does not count is ordinary commuting. Travel from home to your regular place of work is not allowable, even if you are self employed.

This distinction is where many people fall down, especially if they work partly from home.

Working from home and travel claims

If your home is genuinely your main place of business, some travel that would normally be classed as commuting may become allowable. This depends on the facts.

From my experience, HMRC looks at factors such as:

• Where the core administration of the business takes place

• Where records are kept

• Whether there is a fixed office or site you attend regularly

This is an area where advice can make a real difference, because the treatment can vary depending on circumstances.

Two ways to claim vehicle costs

When it comes to using your own vehicle for business, there are two main methods. You must choose one and stick with it for that vehicle.

Mileage allowance method

This is the most common and simplest approach, especially for sole traders and small businesses.

Under the mileage method, you claim a fixed rate per business mile. The current HMRC rates are:

• 45p per mile for the first 10,000 business miles in a tax year

• 25p per mile for any business miles above that

These rates are designed to cover fuel, insurance, servicing, repairs, road tax, and depreciation.

From experience, this method works well because it is simple, predictable, and requires minimal record keeping beyond mileage logs.

Actual cost method

The alternative is to claim a proportion of the actual running costs of the vehicle. This includes:

• Fuel

• Insurance

• Servicing and repairs

• Road tax

• MOT

• Capital allowances on the vehicle

You then claim the business percentage based on business versus personal use.

This method can sometimes give a higher claim, but it involves more detailed records and calculations. Once you choose this method for a vehicle, you cannot switch to mileage later for that same vehicle.

What mileage records you need to keep

HMRC does not require a specific format, but the records must be clear and accurate. From experience, simple and consistent records are far better than complex systems that never get updated.

Your mileage log should include:

• Date of the journey

• Start location

• Destination

• Purpose of the trip

• Number of miles travelled

This can be kept in a notebook, spreadsheet, app, or accounting software. The key is that it is contemporaneous and believable.

Recreating mileage months later is one of the biggest red flags in an enquiry.

Recording other travel expenses

Mileage is not the only travel expense you may be able to claim. Other allowable travel costs can include:

• Train, bus, and tube fares for business journeys

• Taxi fares for business purposes

• Parking fees while on business travel

• Tolls and congestion charges related to business journeys

• Hotel accommodation for overnight business trips

• Subsistence costs when travelling for work

As with mileage, these must be wholly and exclusively for business.

The importance of receipts

For non mileage travel costs, receipts are essential. HMRC expects you to keep evidence to support your claims.

From experience, good record keeping includes:

• Digital copies of receipts

• Clear notes showing the business purpose

• Matching expenses to bank statements or cards

If you cannot evidence an expense, HMRC is entitled to disallow it.

Using apps and software to track travel

Many people now use apps or accounting software to track mileage and expenses. These can be very effective if used consistently.

Popular options include:

• Mileage tracking apps linked to GPS

• Accounting software with expense capture

• Simple spreadsheets updated weekly

The best system is the one you will actually use. In my opinion, consistency matters far more than sophistication.

Common mistakes I see with mileage and travel

There are a few recurring issues I see year after year.

The most common mistakes include:

• Claiming home to work travel incorrectly

• Forgetting to keep mileage logs

• Estimating mileage rather than recording it

• Mixing personal and business journeys

• Claiming both mileage and fuel costs together

• Missing parking and toll claims

Each of these can lead to lost tax relief or problems if HMRC asks questions.

How long you need to keep records

HMRC requires you to keep records for a minimum period. For most self employed individuals, this is at least five years after the 31 January submission deadline for the relevant tax year.

From experience, keeping digital copies makes this far easier and avoids panic later.

How an accountant helps with mileage and travel claims

This is one area where having an accountant often pays for itself. I regularly help clients:

• Decide which vehicle cost method is most tax efficient

• Review mileage logs for compliance

• Correct claims that have been done incorrectly in the past

• Set up simple systems that work long term

• Defend claims if HMRC raises queries

Small adjustments here can make a noticeable difference to your tax bill over time.

Key points to takeaway

From my experience, mileage and travel expenses are not complicated, but they do require care and consistency. The biggest problem I see is not people doing anything deliberately wrong, but people not realising what they can claim or failing to keep proper records.

If you record journeys as you go, understand what counts as business travel, and keep clear evidence, mileage and travel expenses become one of the simplest and most reliable areas of tax relief. Done properly, they reduce your tax bill, stand up to HMRC scrutiny, and give you confidence that you are claiming what you are entitled to without taking unnecessary risks.

You may also find our guidance on Can I claim for clothes, tools, or training as a business expense, and How do I claim tax relief for phone and internet costs, helpful when reviewing related personal tax questions. For a broader overview of Self Assessment deadlines, reporting, and obligations, you can visit our self assessment guidance hub.