2. Vehicles

Calculate your vehicle expenses using a flat rate for mileage instead of the actual costs you paid for buying and maintaining your vehicle.

Vehicle 2013 to 2014 flat rate per mile with simplified expenses What you can claim if you don’t use simplified expenses
Cars and goods vehicles first 10,000 miles 45p* Capital allowances and running costs (for cars) or purchase costs (goods vehicles)
Cars and goods vehicles after 10,000 miles 25p* Capital allowances and running costs (for cars) or purchase costs (goods vehicles)
Motorcycles 24p* Full purchase cost and running costs

*These rates were previously available to businesses with income up to the VAT threshold and are now available to all businesses.

You’ll need to keep a record of the number of miles you travelled for business but you won’t need to keep track of your vehicle running and repair costs.

You can still claim all other travel expenses (eg train journeys) in the usual way.

You don’t have to use flat rates for all your vehicles. However, once you’ve chosen to use them for a vehicle you must stick with this as long as you use that vehicle for your business.

If you’ve already claimed capital allowances for a vehicle you can’t use the mileage rate for it.

Example

You’ve driven 11,000 business miles over the year.

Calculation:

10,000 miles x 45p = £4,500
1,000 miles x 25p = £250
Total you can claim = £4,750

You claim this instead of your actual vehicle costs.

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