How to Claim Business Mileage

Profile picture for user lge@abax.co.uk
How to claim back business mileage

Do you drive a company vehicle or your own vehicle for work purposes? Then it’s certain that you have to regularly claim back business mileage. We have created a guide for claiming back business mileage and to ensure you get the money back in your bank in the quickest and most efficient way possible, to ensure you are not out of pocket.

How to calculate mileage for business expenses

There are multiple methods in claiming back mileage and calculating mileage for business expenses. The guide below will help you understand the different methods of claiming back business mileage, these being: manual mileage claim and digital mileage claim solution.

Manually Claim Back Business Mileage

The process of claiming back business mileage manually can be split into 4 phases:

1: The driver manually documents each business trip using a mileage claim form, that should include all HMRC compliant information below:
•    Details of the vehicle (vehicle registration, make, model, fuel type and engine capacity)
•    The driver and the date
•    Trip start and end location including postcode
•    The purpose (place/companies visited)
•    The start and closing mileage – and total business mileage
•    The mileage rate
2: The driver signs and delivers their complete mileage record to an administrator to be quality checked, processed and stored. 

3: The Administrator quality checks the mileage record and returns it to the driver if information is inadequate or missing. Administrators also manually account for vehicle changes, fluctuations in Advisory Fuel Rates (AFRs), and use these to calculate the cost of private/business allowances for payroll. 

4: The mileage record is filed for 6 full years in preparation for a potential HMRC Business Record Check (BRC). 

Manual Mileage Claim

It is clear that a manual mileage process may leave a business vulnerable, but how can a business protect themselves and improve this process? Is there a better solution that is both HMRC and privacy compliant? To meet compliance, quality standards and simultaneously reduce costs and increase efficiency - businesses are turning to technology - one such technology is known as a ‘digital mileage claim system’.

Digitally Claim Back Business Mileage

A digital mileage claim system works in the same way as manually claiming back business mileage, except information is collected automatically and accurately via a GPS tracking device. 

Consequently, a paperless solution protects from inaccurate and incomplete mileage claim records. Not only does a digital mileage claim system provide pinpoint accuracy and HMRC tax compliance, but it can also help to improve efficiency and reduce fleet costs.

Research by ABAX has shown that the use of a paperless digital mileage claim system not only provides compliance and 100% accuracy, but also drastically reduces administration time. Once implemented, expect to see administration reduce by an average of 2 hours per month for drivers and 45 minutes per driver, per month for administrators.

When switching from a manual process to a HMRC compliant digital solution, you can expect to save an average of £500 per vehicle, per year.

Benefits Of Implementing A Digital Mileage Claim System

•    10% reduction in total fuel spend
•    100% accurate mileage records
•    Significant administration reduction
•    Increased productivity - profitable work vs manual paperwork
•    Reduced servicing costs for company car fleets
•    Paperless - lifetime digital records (HMRC require 6 years)
•    100% privacy, HMRC tax and GDPR compliance

Claim back business mileage with ABAX 

Digital Mileage Claims are delivered directly from the ABAX Mobile app to the appropriate Administrator within the business. Quality checks can be made and inadequate mileage claims returned to the driver with comments. If approved, vehicle mileage rates are calculated and automatically account for vehicle swaps and mileage rate fluctuations. Each record is digitally stored within the system for up to 7 years; ready for a potential HMRC audit. If an audit occurs, an organisation could be at risk of a hefty tax bill. 

Digital Mileage Claim

For Any Size Fleet – Company cars or vans

Whether your fleet has 1 pool car, 50 company cars or 1000 grey fleet cars, ABAX Triplog streamlines the long-winded, outdated manual process to a paperless, cost-neutral solution that adheres to HMRC mileage claim regulation.

Privacy Compliance For Drivers

Each driver has full control over their driving data and privacy settings. All data remains private until the driver submits a digital business mileage claim. Once submitted, the administrator only has access to the business journeys - private journeys will always be hidden.