Companies and cars – business mileage

Paula Veysey Smith • 6 March 2016

The downside is that you now have to record your business miles.  I have a book in the car and record all my business journeys by noting the starting and finishing miles on the clock; yes, I know – I need to get out more! For those less in need of a life, google is a wonderful thing.  You can plot your business journeys and it will tell you how many miles are involved.  See, there’s no excuse for not measuring your business miles and claim your full 45 pence per mile!

Fabulous, just about to change into sixth gear and pull onto the overtaking lane. But then the brakes are applied when someone mentions that three lettered acronym . . . . VAT!!!  Claiming this 45 pence per mile is all very well but what if you are VAT registered, can you reclaim the VAT?  The good news is the answer is yes, but this is where it gets a bit complicated so it may not be time to put cruise control on just yet.

The portion of the 45/25 pence mileage rate that is for fuel is deemed to be those  HMRC published advisory fuel rates  on which you can claim back VAT. That’s a good start but how does that work?

So, lets take an example – if the car we owned had a 1400cc petrol engine, the fuel portion of the 45/25 mileage rate is 13 pence per mile (December 2014):

13 pence per mile represents 120% (100% plus 20% VAT) – no falling asleep at the wheel now!

Therefore 20/120 multiplied by the 13p is 2.2 pence per mile. So for each mile that you incur for business, you can claim back 2.2p in VAT.

There is one caveat, which is that you will need to show HMRC on request VAT receipts that have enough VAT on them to cover the claim. I know that sounds pedantic but considering all service stations are VAT registered it really doesn’t take much to ask for a VAT receipt when paying for your fuel.

So if 1000 miles is claimed in the VAT period, the total value on the receipts must be as follows:

The VAT reclaim will be 2.2p x 1000 = £22 and the fuel receipts should total £147.

With the right procedures in place it is possible to take every tax advantage of using your own car for business, even when that business is VAT registered.  However, if these calculations have sent you into a near state of road rage there is one more option to consider – leasing! Could leasing a vehicle provide hassle free business miles or is it going to be another call out to the AA?!

So, in my last article in this series we’ll take a pit stop and look at the whole issue of leasing, will it lead you onto the motorway of hassle free business motoring or just give you another flat tyre . . .

R is for Reward

by Paula Veysey-Smith • 8 July 2026
The finish line isn't just a destination. It's proof of everything you put in to get there. “Nothing feels so good as when you've succeeded at something you set out to do.” We made it. Seven letters, seven posts, and one very important journey. If you've been following this series from the beginning, you'll know that back in January we started with a goal — a triathlon in July. And as I write this, sitting in the garden with an iced coffee and a medal around my neck, I can tell you: it happened.  R is for Reward. And it might just be my favourite letter of the lot.

E is for Evaluate

by Paula Veysey-Smith • 8 July 2026
Setting a goal is just the beginning. What keeps it alive — and keeps you moving towards it — is what you do in between. “Evaluating what you're doing is so important. What worked, what didn't, what can I do better?” We're six letters into the SMARTER framework now. We've covered Specific, Measurable, Achievable, Relevant and Time-bound. Today we reach E for Evaluate — and I'll be honest with you, I think this might be the most important letter of the lot.

T is for Time-Bound

by Paula Veysey-Smith • 26 June 2026
A goal without a deadline is just a wish with good intentions. Here's why putting a date on it changes everything. “Having that end date is something that gives you the enthusiasm, the commitment, and the motivation to continue.” We're now on T in the SMARTER Goals series - and this one is beautifully simple. T stands for Time-Bound, or Targets. It means giving your goal an end date.

R is for Relevant

by Paula Veysey-Smith • 26 June 2026
Short-term goals are more powerful when they're built towards something bigger. Here’s why relevance is what keeps you going when motivation dips. “Goals that are shorter term in nature, but built to a bigger vision, are the most motivating that you can get” So far in this series we've looked at S for Specific, M for Measurable, and A for Achievable. Now we come to R for Relevant -- and this one is about making sure your goals are connected to something that genuinely matters to you.
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