If you use your own vehicle for business travel, you may be able to claim mileage as a sole trader.
This can reduce your taxable profit, but the journey must be genuinely business-related. Personal travel, normal commuting and private journeys should not be claimed as business mileage.
What counts as business mileage?
Business mileage usually includes journeys made for business purposes, such as:
- Travelling to a customer or client
- Visiting a supplier
- Driving to a temporary work location
- Attending a business meeting
- Collecting materials or stock
- Visiting your accountant or business adviser
The journey needs to be connected to your trade. If the journey is mainly personal, it should not be claimed.
What mileage can’t you claim?
Sole traders should be careful not to claim ordinary commuting or private travel.
For example, if you travel from home to the same regular workplace every day, this may be treated as normal commuting rather than business travel.
You also cannot claim mileage for personal trips, school runs, shopping or journeys that are not connected to the business.
How do sole traders claim mileage?
Many sole traders use HMRC’s approved mileage rates. This means claiming a fixed amount per business mile instead of working out the exact running costs of the vehicle.
This can be simpler because it avoids splitting fuel, insurance, repairs and other vehicle costs between business and personal use.
However, once you choose a method, you should apply it consistently and keep proper records.
What records should you keep?
You should keep a mileage log showing:
- Date of the journey
- Start and end location
- Reason for the journey
- Number of business miles
- Client, supplier or job reference where relevant
You should also keep supporting evidence where possible, such as diary entries, invoices, job sheets or meeting notes.
Common mileage mistakes
Common mistakes include:
- Guessing mileage at the end of the year
- Claiming personal journeys
- Forgetting short business trips
- Not recording the reason for each journey
- Mixing commuting with business travel
- Failing to keep a clear mileage log
HMRC may ask for evidence, so it is better to record mileage as you go rather than trying to recreate it months later.
Why mileage matters
Mileage can add up quickly, especially for tradespeople, mobile workers, consultants and anyone visiting customers regularly.
If you do not record it properly, you may miss out on legitimate business expenses. But if you overclaim, you could create problems if HMRC reviews your records.
The aim is to claim what is fair, reasonable and supported by evidence.
Final thoughts
Sole traders can usually claim mileage for genuine business journeys, but the records need to be clear.
Keep a mileage log, separate business and personal travel, and avoid guessing at the end of the year.
If you are unsure what mileage you can claim, Merranti Accounting can help you keep your records accurate and make sure your tax return is prepared correctly.
Written by Steve Watts
