If you have used your car for occasional, regular, or frequent business travel, you may be able to count this as a business expense. Tracking business mileage for your tax return can be done simply, resulting in savings on your tax bill.
What can be counted?
Business mileage counts as journeys where business is the main purpose of the journey. This can include meeting customers, attending courses and business events, picking up equipment and stock, and driving to a temporary site or between sites. It does not include a regular commute, personal errands, or journeys where the purpose is not clear. The amount HMRC sets for vehicles covers fuel, insurance, MOTs, and servicing.
If you are unsure if a journey can be claimed, discuss it with your accountant. To find accountants in your area with a relevant internet search. For example, a search for accountants Bath will include https://chippendaleandclark.com/accountants-near-me/bath.
How to record
If you are a sole trader, your tax return will only include the final amount you are claiming for. But you do need to keep records for five years of your business journeys. You should include the date of the journey, where it started and ended, the business purpose, the number of miles it took, and the type of vehicle used. Limited company directors can claim the mileage from the company, and the company must then record it as an expense in the business accounts. Record these in a way you feel comfortable with. This could be a paper log, a spreadsheet, or a tracking app.