If you’re a sole trader or a director of a limited company, you can claim business mileage to help keep your owed tax down. The problem is, not every self employed person or business owner is familiar with how business mileage works or what the business mileage rates for 2022 are.
If you’re thinking about claiming business mileage but don’t know exactly what it is, how it’s calculated, or what you need document wise to do so, keep reading as we explain everything you need to know, including the new advisory business mileage rates for 2022.
What are business mileage rates 2022?
As it stands, the current HMRC 2022 business mileage rates are:
Type of Vehicle
> 10,000 miles
< 10,000 miles
Car or van
Bicycle (limited businesses only)
HMRC reviews advisory business mileage rates every quarter. It’s also important to note that business mileage only applies to business-related trips, not personal trips or errands, even if you’re using the company car or your personal car to do either.
Who can claim business mileage?
Business mileage rates are payable from HMRC to sole traders and limited companies and account for the general upkeep, insurance, and running costs of business-related travel.
A business may also pay their employees business mileage, but if they don’t, or if they pay less than the HMRC business mileage advisory rates, employees can claim the difference from HMRC directly.
How to claim business mileage
When it comes to claiming business mileage, you need to make sure you have a robust and comprehensive log-keeping system in place. This is because, for HMRC to approve your claim, they’ll need to know how many miles you’ve covered for business purposes, as well as the dates you travelled on and where you were going.
With this in mind, it’s a good idea to have either a notebook in the company car or your car where you can note down the starting mileage and ending mileage of a trip, or, you could do it electronically in case anything gets lost. The best way to do this is to use a secure and efficient accounting system that keeps track of your expenses digitally.
Provided you have this information, it’s pretty straightforward to put in a business mileage claim with HMRC.
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How Accountancy Cloud can help
Whilst the process of claiming business mileage is relatively easy, you need to ensure you have a fool-proof accounting and bookkeeping process in place. This will help you identify fuel and car maintenance costs and keep on top of all of your tax-related tasks.
At Accountancy Cloud, we are market leaders in bookkeeping and accounting software. We know everything there is to know about claiming tax relief, including business mileage, and we can help you implement log keeping processes to ensure you have everything you need when the time comes to submit documents to HMRC.
To find out more about how we can help you with business mileage rates for 2022, please get in touch.
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