Business expenses and mileage for 2026/27
Record company costs, director-paid items and vehicle mileage with evidence that supports the claim.
In this guide
01
Record the expense, payment and evidence
A company expense should be incurred wholly and exclusively for the business. Save the receipt or invoice, select the correct tax and VAT category, enter the actual payment date and identify who paid.
If a director paid personally, choose the director-paid method. AIS credits the amount to the director's loan account until the company reimburses it.
02
Mileage rates from 6 April 2026
- Cars and vans: 55p per business mile for the first 10,000 miles in the tax year.
- Cars and vans: 25p per business mile above 10,000 miles.
- Motorcycles: 24p per business mile.
- Bicycles: 20p per business mile.
The car and van rate increased retrospectively from 45p to 55p for the first 10,000 miles from 6 April 2026. Keep the journey purpose, date, start and end points, distance and vehicle details.
03
Record mileage in AIS
- Open Expenses > Mileage and add the journey date and business purpose.
- Enter the start, destination, distance and vehicle type.
- Check cumulative tax-year mileage so AIS applies the correct band.
- Approve the claim and reimburse it, or leave it owed to the director.
Sources and review notes
AIS rewrote this guide for its own workflows. Crunch Help informed the software process; linked HMRC guidance is the authority for UK rules, rates and deadlines.