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Mileage and Travel Expenses: What You Can Claim for UK Tax
As a UK company director or employee, you may be required to travel for business purposes. It is important to understand which travel expenses can be claimed as tax relief against corporation tax or personal income tax.
Here is a brief explanation of which travel expenses you can and cannot claim:
EXPENSES WHICH CAN BE CLAIMED
- Public transport: The cost of train, bus, and taxi fares for business-related travel can be claimed.
- Car and mileage expenses: If you use your own car for business travel, you can claim a mileage allowance. Alternatively, you can claim the actual costs of using your car for business travel, such as fuel, insurance, and maintenance costs.
- Subsistence expenses: You can claim the cost of food, drink, and accommodation when travelling for business purposes.
How to claim for mileage from HMRC
You can claim mileage from HMRC on your Self Assessment tax return if you are an individual or your Corporation Tax return if you are filing for a limited company . You can only claim for trips you had to make for work. Importantly, this does not include driving to and from your home and your work.
You can claim the ‘approved mileage rates’ of up to 45p per mile for the first 10,000 miles you travel in a financial year, and 25p per mile thereafter. These rates include not just fuel costs, but also estimated maintenance and road tax.
EXPENSES WHICH CANnot BE CLAIMED
- Non-business travel: Any travel that is not related to your business, such as commuting to and from work, cannot be claimed.
- Entertainment expenses: The cost of entertaining clients or suppliers, such as meals or theatre tickets, cannot be claimed.
- Non-business accommodation: If you decide to extend your stay and spend some time on leisure activities, any accommodation costs for non-business purposes cannot be claimed.
Don’t Assume Every Journey Is Deductible
Mileage and travel expense claims must meet strict rules, particularly around business purpose, commuting exclusions, and accurate record-keeping. Claiming ordinary commuting or insufficiently documented journeys can lead to disallowed expenses and potential enquiries. Seeking professional accounting services London ensures your travel claims align with HMRC guidance and are supported by appropriate evidence. Cigma Accounting, advising business owners from our Hammersmith and supporting clients in Brackenbury Village and Brook Green, provides clear guidance on when mileage rates or actual costs are appropriate.
Choosing between simplified mileage rates and actual vehicle expenses requires careful assessment of usage patterns and overall tax efficiency. Working with an experienced tax accountant in London allows you to structure claims accurately before submitting your return. Cigma Accounting offers practical, compliance-focused advice with physical offices across London, helping you maximise legitimate travel deductions while minimising compliance risk.
UNCERTAIN WHETHER YOUR TRAVEL COSTS ARE ALLOWABLE?
Mileage, fuel, and travel expenses are only deductible where journeys meet strict business-use rules. Reviewing how trips are recorded and classified can help ensure claims are accurate and withstand HMRC scrutiny.
Trusted guidance from London-based accountants, focused on accuracy, clarity, and compliance.
