Are you a (self-employed) entrepreneur? Then you probably spend a lot of time in the car. On the way to a client, networking drinks or your accountant. Then we have good news for you: you can deduct those trips from your profits. In 2025, there will be a fixed mileage allowance. Nice and easy. In this article you can read what that allowance is, how it works and how to make convenient use of it.
What is a mileage allowance?
The mileage allowance is a fixed amount that you can deduct from your profit per business kilometre. So do you drive your car, bike or scooter for work? Then you can include those kilometres. You do not receive the amount directly from the tax office in your account, but you enter it as an expense in your administration. That way, you reduce your profit and end up paying less tax.
How high is the mileage allowance?
In 2025, you can deduct €0.23 per business kilometre. This applies if you use your own car, bike or scooter, which is not in your company's name. Because only business trips count.
For which trips does the mileage allowance apply?
As a business owner, you may only use the mileage allowance for trips that are actually related to your work. Think about:
- Driving to a customer or client
- Being on the way to a networking meeting or business event
- Shopping or collecting something from a supplier
- On the way to your rented office or practice space
Do you work from home most of the time? Then appointments away from home are still business. Rides for private business or to your regular job may not count, unfortunately.
How does mileage reimbursement work in practice?
Mileage reimbursement simply means that you declare business trips with your 'private vehicle' as expenses in your accounts. You won't get any money back, but your profits will be lower. And that in turn saves you tax. Here's how to go about it and what you can choose from.
Paying yourself a mileage allowance
If you use your private vehicle for business trips, you may grant yourself a mileage allowance. To do this, add up all your business kilometres and multiply it by the applicable rate (€0.23 in 2025). You eventually enter this amount as business expenses.
Processing in your administration
You then book the total fee as a business expense in your accounts. You can do this manually, but also via an accounting program or in Excel. A separate invoice is then not necessary, but make sure you have a complete kilometre registration.
Pass on travel costs to your client
If you pass on the travel costs to your customer, they will be seen as turnover. However, you can simultaneously use the business kilometres at €0.23 per kilometre as business expenses in your accounts. This will reduce your taxable profit. You can do this in two ways:
Processing on the invoice
Put the cost as a separate item on the invoice. For example, "30 km x €0.23 = €6.90". If necessary, add a short text and explanation or refer to your mileage records.
Factor into your hourly rate
You raise your hourly rate to include travel expenses. Normally, you don't mention something like this separately on the invoice, but it is smart to agree this well in advance with your client.
How do you keep track of your mileage?
Proper mileage registration is mandatory if you want to use the mileage allowance. If you want to do it right, you need to record at least the following:
- Date of the trip
- Start and end address
- Number of kilometres
- Business purpose of the ride
If you do a lot of business mileage, it is useful to use an app or keep track of it automatically via your accounting software. Of course, you can also use an Excel sheet. The important thing is that everything is complete and verifiable.
Conclusion
The mileage allowance is an easy way to offset business expenses for tax purposes. By keeping good records of when and why you travel, you can save a lot of tax as a self-employed person. Make sure you keep complete records and process everything neatly in your accounts. Because this is the only way to get the most out of it.
