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Record mileage

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Summary

How to track mileage for Sage Sole Trader. Learn how to record mileage so it appears correctly in your tax updates.

Description

Sage Sole Trader doesn't track mileage for you. You need to keep your own mileage log throughout the year and calculate your total claim at year-end.

If you use your own car or van for business, you can claim mileage using HMRC's simplified expenses method.

This uses a flat rate per mile to cover all vehicle running costs, including fuel, insurance, servicing, and wear and tear.

CAUTION:

If you claim mileage allowance, you can’t also claim separate vehicle costs, such as fuel, insurance, or repairs. The mileage rate covers everything. Once you choose this method for a vehicle, you must use it for as long as you use that vehicle for business.

Understand the HMRC mileage rates

HMRC sets approved mileage rates for cars and vans:

  • 55p per mile for the first 10,000 business miles in a tax year
  • 25p per mile for any miles over 10,000

The tax year runs from 6 April to 5 April. These rates cover all vehicle running costs, so you don’t need to keep fuel receipts.

Know what counts as a business journey

A business journey is one where your main purpose for the journey is work-related. This includes if you travel to client sites, meetings, suppliers, or temporary workplaces.

Your daily commute between home and your regular workplace doesn’t count as a business journey.

TIP:

If you work from home as your main base, travel to client sites, and temporary workplaces is usually claimable.

Resolution

Keep a mileage log

Record every business journey as it happens. For each trip, log the following:

  • Date of the journey
  • Start and end locations
  • Purpose of the trip
  • Total miles travelled

Keep this log for at least six years. HMRC can ask to see it as evidence for your mileage claim.

Calculate your mileage claim

At the end of the tax year, add up your total business miles and apply the HMRC rates.

For example, if you drove 12,000 business miles in the tax year:

  1. Multiply the first 10,000 miles by 45p. This gives you £4,500.
  2. Multiply the remaining 2,000 miles by 25p. This gives you £500.
  3. Add the two amounts together. Your total mileage claim is £5,000.

Apply your mileage total

Your mileage claim is a year-end adjustment. You don't need to enter it as a quarterly expense.

Keep your mileage log up to date throughout the year. When you reach your year-end, you'll apply the total as part of your year-end process.

NOTE:

Your mileage total doesn't appear in your quarterly updates. It's applied separately at year-end to make sure your figures are accurate for your tax return.