Mileage Allowance Vs Actual CostsLast updated: 08 Jun 2020
We have been asked by a few users “Which is the best method for calculating their accounts, mileage allowance or actual costs?”
The first thing you should know is there is no universal “one size fits all” answer. Circumstances vary from one vehicle owner to the next; depending on the age of the vehicle, when it was purchased, miles driven etc.
Check if simplified expenses could save your business money
HMRC have provided a handy simplified expenses checker tool.
You can calculate your expenses by adding up the actual costs and comparing them against mileage allowance.
Once you start using either method, you must continue using that same method until you change the vehicle
Use this checker to work out which method is best for you.