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Many people who run a small business use a vehicle for their business purposes. Therefore, it is highly important to ensure you have a motor trade insurance policy. However, unfortunately many such business owners are not aware of the fact that they can save a decent sum of money each year in the form of  a mileage claim. This can be a great benefit to small business owners who use their vehicle for household as well as business purposes. In this way, they could recoup the expenses they expend on their business in the form of mileage benefits. Still the main question is how to claim vehicle mileage.

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Mileage claim and how they work

Claiming the standard mileage rate (SMR) for a vehicle on your taxes warrants a little bit of record keeping. Some tax payers prefer to avoid this hassle, and go for claiming actual expenses. However, the truth is you need to keep even more records to claim actual mileage benefits. The drive to avoid hassles of record keeping transforms into a more daunting affair. This is why claiming standard mileage is a better bet compared to claiming actual expenses. Here, it is important to understand that you don't have to file the standard mileage record with your taxes, but you might be required to provide these records in case of an audit.

Now the burning question is how to maintain the record of your vehicle mileage. First of all, you have to make sure that you are actually using a vehicle for your business. You can't club any of your domestic vehicle expenses for claiming automobile mileage. Let us assume that you are using a vehicle for obtaining supplies or inventory for your venture. You can certainly deduct all of the expenses of your vehicle for obtaining supplies and inventory for your business. For that, you will have to record the mileage.

Make it a habit to write down the odometer reading of your automobile on January 1st every year. You can make use of a spreadsheet like an excel sheet or similar one for easy record keeping. No matter what kind of spreadsheet you prefer, be sure to record the daily mileage of your vehicle used for your business.

You will be required to record pertinent details of the vehicle used for your venture. This could include the starting mileage, the ending mileage, where you went as well as the purpose of the trip. Write down the details on a scrap paper, which you can use for filling the spreadsheet after returning from the trip. At the end of the year, you can make a vehicle mileage claim based on the records.

Closing words

Running a small venture is definitely a chore in this modern uncertain world. You need to cut down your expenses and cost to be able to survive and thrive in the competition. In such a situation, saving some amount of money by way of vehicle mileage could be a great benefit. Without putting in much effort, you might be able to enjoy considerable tax benefit in case you use the automobile on a daily basis for carrying out your business chores. So make sure you record your vehicle mileage in order to claim standard or actual expenses you expended on your vehicle while using it for your business.