How Mileage Tracking Cut a Builder’s Tax Bill

How Mileage Tracking Cut a Builder’s Tax Bill

How Mileage Tracking Cut a Builder’s Tax Bill

At AccounTax Zone, we often meet construction business owners who are so focused on getting the job done that they overlook small admin habits — like mileage claims — that could actually save them real money.

One of our clients regularly used their personal car to travel between sites, meet suppliers, and check in on projects. But they weren’t tracking those trips or claiming mileage — because they thought it was too much hassle or didn’t realise it was worth it.

The Missed Opportunity: Mileage Allowance Relief

Here’s what they didn’t know:

  • If you use your personal vehicle for business, you can claim a tax-free mileage allowance of:
    • 45p per mile for the first 10,000 miles in a tax year
    • 25p per mile after that
  • This isn’t just fuel — it covers wear and tear, insurance, maintenance, and more
  • It can be claimed even if the car isn’t owned by the business

What We Did: A Simple Mileage System

We helped them put together a basic log for tracking business trips — nothing fancy, just dates, start and end points, and miles travelled. At the end of the year, we calculated the claim and submitted it.

The Result: Hundreds Back, Year After Year

By claiming mileage properly:

  • They reduced their personal tax bill
  • The business didn’t have to reimburse fuel separately
  • It encouraged better record-keeping, which helped with other areas too

It’s one of those tax reliefs that adds up over time — and once the habit’s in place, it’s easy to maintain.

Could You Be Missing Out Too?

If you’re regularly using your own car for site visits or client meetings, you might be leaving money on the table.

At AccounTax Zone, we help business owners stay on top of the small stuff that makes a big difference.

Let us know if you’d like help setting up a simple mileage tracking system, or just want us to check if you’ve been missing out.

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