If you use a personal car for work, you shouldn’t have to cover the costs yourself. Mileage claims ensure you get reimbursed, but many people either forget to track their trips or make small mistakes that delay payments.
Mileage claims aren’t just about logging distances. You also need to know which trips qualify, how to calculate your reimbursement correctly, and what records to keep. Relying on rough estimates or missing key details could mean losing out on money you’re owed.
A simple, reliable tracking system can make all the difference. Whether you’re an employee or a business owner, understanding how to properly log, calculate, and submit mileage claims can help you avoid errors, get paid faster, and stay organized for tax season.
This guide covers everything you need to know, from mileage rates and calculation methods to the best ways to track your trips. By the end, you’ll have a clear, step-by-step process for ensuring you get reimbursed without stress.
What Is a Mileage Claim?
A mileage claim lets you get reimbursed when you use a personal car for work-related travel. If your job requires you to drive to a client meeting, visit a supplier, or attend a business event, you can claim back the cost of the trip. The reimbursement is based on a set mileage rate, which covers expenses like fuel, maintenance, and general wear and tear on your vehicle.
But, not every trip is eligible for reimbursement. Here’s how to tell the difference:
Eligible Trips:
- Traveling to a work meeting, conference, or event
- Visiting a client, supplier, or business partner
- Driving between office locations or job sites
Non-Eligible Trips:
- Commuting from home to your workplace
- Running personal errands, even during work hours
Keeping a clear record of your work-related mileage ensures accurate reimbursements. Now, let’s explore how mileage rates work and how they affect your claim.
How Mileage Claim Rates Work?
A mileage claim rate is a fixed amount paid per kilometer when you use your car for work. Instead of keeping track of every fuel refill or maintenance cost, you simply multiply your business kilometers by the set rate to calculate your claim. This rate helps cover fuel, car wear, insurance, and other driving-related expenses.
How Are Mileage Claim Rates Set?
Mileage rates differ based on:
- Government Guidelines: Some countries, like Singapore, follow tax authority guidelines such as those set by IRAS.
- Company Policies: Employers may set their rates based on budgets or industry standards.
- Vehicle Type: Cars, vans, and motorcycles often have different reimbursement rates.
Keeping up with the latest mileage claim rates ensures you receive the correct amount when filing a claim.
How to Calculate a Mileage Claim?
To determine your mileage claim, multiply the total kilometers driven for work by the approved mileage rate.
Use this formula to calculate your mileage claim:
Total business kilometers × Mileage rate = Mileage reimbursement
This simple calculation ensures you get reimbursed accurately for work-related travel.
Example: Emma, a customer service representative, frequently drives to meet vendors. Last month, she drove 200 km for work. Her company reimburses mileage at $0.45 per km.
200 km × $0.45 = $90
That means she can claim $90 for her business travel that month.
Extra Rules That May Apply
Some employers have additional conditions for mileage claims, such as:
- Claim Limits – A maximum number of reimbursable kilometers per month.
- Tiered Rates – A higher rate for the first set of kilometers, with a lower rate afterward.
- Special Cases – Different rates for long-distance business travel.
Before submitting a claim, check your employer’s policies to avoid errors or delays. Now that you understand how mileage claim rates work, let’s explore ways to track your mileage for hassle-free reimbursement.
Ways to Track Your Mileage Claim
It is important to keep accurate records of your mileage claim. If you don’t track your trips properly, you could lose money or run into tax issues. The best approach is to use a simple, reliable method that keeps your records clear and easy to access.
1. Using Technology for Mileage Tracking
Mileage-tracking apps make logging business trips effortless. These apps use GPS to track distances automatically, so you don’t have to write anything down. They also allow you to separate personal and business trips, making it easier to file an accurate claim.
2. Manual Methods for Mileage Tracking
Some people prefer pen and paper or spreadsheets to track their mileage. This typically involves:
- Writing down odometer readings at the start and end of each trip
- Logging trip details like date, purpose, and distance traveled
While this method works, it requires more effort and increases the risk of errors or missing data.
No matter which method you choose, keeping accurate records ensures you get reimbursed for every business trip and avoid claim disputes. Now, let’s break down the step-by-step process to calculate your mileage reimbursement.
Step-by-Step Guide to Calculate a Mileage Claim
If you use a personal car for work, you can request reimbursement through a mileage claim. Follow these steps to ensure accuracy and avoid payment delays.
Step 1: Track Your Business Kilometers
Keep a detailed record of every work-related trip. This includes driving to meet clients, visiting suppliers, or attending business events. However, personal trips like commuting to the office or running errands do not qualify for work-related trips.
Step 2: Multiply by the Mileage Claim Rate
Once you have your total business kilometers, multiply them by the mileage rate set by your employer or tax authority. This rate helps cover costs like fuel, maintenance, and vehicle wear.
Step 3: Check for Employer-Specific Rules
Some companies apply additional rules to mileage claims, such as:
- Reimbursement Limits – A maximum number of reimbursable kilometers per month.
- Tiered Rates – A higher rate for the first set of kilometers, with a lower rate afterward.
- Extra Compensation – Higher rates for long-distance trips.
Example: Lisa’s company only reimburses the first 200 km at $0.50 per km. After that, the rate drops to $0.30 per km.
Her new calculation:
- 200 km × $0.50 = $100
- 50 km × $0.30 = $15
- Total mileage claim = $115 instead of $125.
Understanding your company’s mileage policies ensures you receive the correct reimbursement. Next, let’s explore how to submit a mileage claim for faster approval.
How to Submit a Mileage Claim?
Submitting your mileage claim correctly ensures you get reimbursed on time. If you miss key details or deadlines, your claim could be delayed or rejected. While every company has its process, most follow these basic steps.
1. Follow Your Company’s Process
Each business has different methods for handling mileage claims. Some use online portals where you enter trip details and upload receipts, while others require paper forms with handwritten logs. Before submitting your claim, check your company’s specific requirements.
2. Include All Trip Details
A complete claim should clearly list the following:
- Date of travel
- Starting point and destination
- Purpose of the trip (meeting a vendor, site visit, etc.)
- Total kilometers driven
3. Attach Proof if Required
Some employers ask for supporting documents to verify mileage claims. This may include:
- GPS logs from a mileage-tracking app
- Odometer readings before and after trips
- Receipts for tolls or fuel (if applicable)
4. Submit Before the Deadline
Most companies set deadlines for mileage claims, such as:
- End of the month (for payroll processing)
- End of the quarter (for tax reporting)
Late submissions may lead to delays or outright rejections, so don’t wait until the last minute!
5. Keep a Copy of Your Records
Even after submitting your claim, keep a backup of your mileage records in case your employer requests proof later. Store:
- Mileage logs (spreadsheet, app, or written notes)
- Trip receipts (if needed)
- Approval emails or claim confirmations
Why Do Mileage Claims Get Rejected?
Submitting a claim doesn’t always guarantee approval. Mistakes or missing information can lead to delays. Most businesses have strict policies to ensure only valid business-related expenses are reimbursed.
Common Reasons for Rejection:
- Missing Trip Details: Incomplete info (date, distance, reason for travel) can raise red flags.
- Late Submission: Many companies enforce strict deadlines for claims.
- Claiming Non-Business Trips: Only work-related travel qualifies. Personal trips are not reimbursable.
- Guessing Instead of Tracking: Estimating distances without proper records can make claims unreliable.
A complete and accurate mileage claim is more likely to be approved without hassle.
Now that you know how to submit a mileage claim, let’s go over common mistakes people make and how to avoid them.
Common Mileage Claim Mistakes to Avoid
Filing a mileage claim may seem simple, but small mistakes can lead to delays or rejections. Some errors happen due to unclear policies, while others result from poor record-keeping. The good news? These mistakes are easy to prevent. Let’s look at the most common ones and how to avoid them.
1. Claiming Non-Business Trips
Mileage claims only apply to work-related travel, such as meeting customers, visiting vendors, or attending business events. Personal trips, like commuting to the office or running errands, do not qualify.
2. Estimating Instead of Tracking Actual Distance
Your mileage claim should be based on accurate records, not rough estimates. If your employer requests proof and the numbers don’t match, your claim may be denied.
3. Submitting a Late Claim
Many companies have strict deadlines for mileage claims. If you miss the deadline, your claim may be delayed or rejected.
4. Not Keeping Proof of Travel
Some employers require supporting documents for mileage claims, such as GPS logs, odometer readings, or fuel receipts. Without proof, your claim might not be approved.
By avoiding these common mistakes, you can ensure your mileage claims are accurate and processed without delays.
How Peakflo Helps with Mileage Claims?
Managing mileage claims can be time-consuming, and even small mistakes can cause delays. With Peakflo, you can streamline the process, reduce errors, and ensure employees get reimbursed on time. Here’s how Peakflo makes mileage claims hassle-free:
1. Set Clear Mileage & Fuel Reimbursement Policies
With Peakflo, you can define company-wide rules for mileage and fuel reimbursements. Employees know exactly what they can claim, and automated calculations ensure consistency, no more guesswork or disputes.
2. Automate Mileage & Fuel Reimbursement Calculations
Forget manual calculations. Peakflo applies predefined mileage rates to each trip, automatically determining the reimbursement amount. This eliminates calculation errors and speeds up the claims process.
3. Sync Mileage Categories with Your Accounting Software
Peakflo integrates seamlessly with your accounting software, ensuring that mileage claims are categorized correctly. This saves finance teams the hassle of manually organizing expenses and keeps records audit-ready.
4. Manage Mileage Categories Based on Company Policies
Customize mileage categories to align with your company’s reimbursement rules. Whether it’s setting different rates for vehicle types or business trips, Peakflo keeps every claim compliant.
5. Automate Approvals for Mileage Claims
Peakflo automatically routes mileage claims to the right approver, reducing approval bottlenecks. Employees get faster reimbursements, and finance teams stay on top of approvals without manual follow-ups.
6. Detect Anomalies and Prevent Fraud
Peakflo flags duplicate or suspicious mileage claims, helping businesses prevent overclaims and fraud. This ensures only valid expenses get reimbursed, saving costs in the long run.
7. Keep All Mileage Claim Approvals in One Place
With Peakflo, employees and managers can track every mileage claim from submission to approval. All in a single dashboard, no more chasing emails or missing records.
Peakflo takes the complexity out of mileage claims, making the process faster, more accurate, and fully compliant with company policies.
Conclusion
Submitting a mileage claim doesn’t have to be complicated. By tracking your trips accurately, following your company’s guidelines, and submitting your claims on time, you can avoid delays and ensure you get reimbursed without any hassle.
Mileage tracking tools can make the process even easier. Instead of keeping manual records, you can use an automated system that logs your trips accurately and speeds up your claim approvals. This saves you time and reduces the risk of errors.
If you’re still using paper logs, it might be time for an upgrade. Peakflo automates mileage expense submission, streamlines approvals, and ensures timely reimbursement without the back and forth.Ready to make mileage claims easier and faster? Book a demo with Peakflo and see how we can help save you time and reduce errors.
