How to Record Mileage in Xero (2026 Guide)

Quick answer

On desktop, go to Purchases, then Expenses, then New expense, then Mileage claim; in the Xero Me app, tap New claim, then Mileage claim ^[1] . Enter the distance, the standard rate per mile or kilometre, a description of the trip and the date, then submit it to your approver ^[1] . Xero calculates the total in your base currency, and distance defaults to your country’s unit ^[1] . Mileage claims aren’t available in Classic expense claims ^[1] .

Mileage claim, not fuel receipt

Mileage is the one expense type where the source document is a log, not a receipt. A distance-based claim compensates the employee for using a private vehicle, and the per-kilometre or per-mile rate is designed to cover fuel, servicing, insurance, and depreciation together. That has two ledger consequences. First, post mileage to its own expense account rather than the fuel account, because fuel bought on a company card is a different cost with a different tax treatment. Second, never reimburse a fuel receipt and mileage for the same trip; the rate already contains the fuel.

Entering the claim

1. In Xero, open Purchases, then Expenses, click New expense and choose Mileage claim; in Xero Me, tap New claim, then Mileage claim ^[1] .
2. Enter the distance travelled. In Xero Me you can tap Calculate distance, enter the start and end locations, and use the distance Xero shows on the map ^[1] .
3. Enter the standard rate per mile or kilometre. Xero has no organisation-wide default rate; a request to add one was marked accepted in November 2025 but isn’t on Xero’s roadmap ^{[1] [2]} .
4. Add the description and date: where, when and why. “Client visit, Hamilton office, project kickoff” survives an audit; “travel” does not.
5. Optionally attach a file or photo under 10MB, such as a route screenshot, and add tracking categories, a project or a customer ^[1] .
6. Save a draft, submit to your approver, or approve it if you are the approver ^[1] .

Admins and approvers can create a mileage claim on behalf of an employee, but the employee can’t be changed afterwards ^[1] .

Approval, payment, and bank reconciliation then follow the standard flow described in our expense reports guide.

Setting the rate

Xero treats the rate as plain data, so governance sits with you:

• Look up the current approved rate from your tax authority each year and tell staff. Rates change, sometimes mid-year, and an old rate typed from memory is the most common mileage error in practice files.
• If your organisation reimburses above the approved rate, the excess is typically taxable to the employee and may need to run through payroll rather than an expense claim. Keep the claim at the approved rate and handle any top-up deliberately.
• Some jurisdictions cap the number of kilometres claimable at the standard rate in a year or vary the rate by vehicle type. Where a cap applies, track cumulative distance per employee outside Xero, because Xero will not warn you.

The country-specific rates and caps are covered in our claim guides, for example claiming mileage in the UK.

The trip log

The claim in Xero records the total; the log proves it. A defensible log is contemporaneous and per-trip: date, odometer or measured distance, origin and destination, business purpose. Spreadsheets work at low volume. At higher volume, employees stop logging, reconstructed logs appear at year end, and the deduction becomes fragile. If that pattern sounds familiar, fix the capture side: a mileage log template for the disciplined, or an app that records trips automatically for everyone else.

Common mistakes

• Reimbursing mileage at last year’s rate because staff typed the old figure and the approver didn’t check it.
• Posting mileage into the fuel account, breaking both cost analysis and the tax workpapers.
• Paying a fuel receipt and a mileage claim for the same journey.
• Claims with no business-purpose note, which fail review the moment anyone asks.
• Treating a regular home-to-office commute as claimable business travel; in most jurisdictions it is not, and approvers should decline it.

Software that helps

• Xero Me handles manual distance entry and keeps the claim flow inside Xero.
• ExpenseFlow captures the receipts behind directly paid vehicle spend (fuel, servicing, insurance), codes them with the right tax treatment, and posts approved records to Xero, which keeps company-paid vehicle costs from blurring into the mileage account.
• Dedicated GPS trip apps suit field teams with daily driving; export the log monthly and enter one consolidated claim.

Related guides

See recording expense reports in Xero for the approval and reimbursement mechanics, recording receipts in Xero for document capture, and the mileage allowance glossary entry for what the rate is meant to cover.