The flat rate method

TAXO’D uses the HMRC mileage rate to calculate expenses for using your own vehicle. It’s the simplest way to claim for vehicle expenses. 

It covers all your motoring costs, including fuel, maintenance and wear and tear. Your claim is calculated based on the number of miles you travel for business reasons.

Cars: Up to 10,000 miles 45p (After 10,000 miles 25p) Motorcycles: 24p 

Logging miles

It’s important that you track every journey you make.  The best way to do this is to keep a mileage journal (HMRC says so): TAXO’D makes that easy. 

Here’s how:

  • Hit minus for the home menu

  • Select Mileage Rate from the category dropdown 

Choose your vehicle

There are different rates depending on the vehicle you use. Select the car if you use a car or a van, or motorbike for, well, a motorbike.

How far did you go?

You can work this out in a number of ways. Here’s three of them:

  1. Set your tripometer to zero when you set off and record the total miles at the end

  2. Note the miles on the odometer when you start and end your journey. Take the start miles away from the end to get your total

  3. Use online maps or sat nav to calculate the distance between start and end points

Log your journey

Pop in where your journey started and ended.

Add a note

Most expenses don’t require an explanation, but mileage records do. HMRC are clear about this, so stick a note in here.

Van drivers

TAXO’D works best using the flat rate method but you can claim the actual cost of running a van if you prefer. If you do that, then don’t use the mileage rate method outlined above as well. If you use the actual cost method, enter all your running costs under VAN EXPENSES. Add fuel costs, maintenance and servicing etc as separate entries


Remember, your daily commute between home and work is not an allowable business expense so don’t record those miles. 

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