🌐 Web | 👤 Admin with Mileage rates permissions
Use this article to create a fixed mileage rate in Yokoy. A fixed mileage rate reimburses employees at a fixed rate per kilometer or mile, regardless of how much they've already driven in the period.
Creating a fixed mileage rate
Go to Settings > Expense settings > Mileage rates.
Click Add new mileage rate.
Select Simple mileage rate.
Fill in the rate details:
Fixed mileage rate configuration
Field | Description |
Name | The name of the mileage rate. |
Category | The expense category to link this rate to. This makes sure mileage costs are posted to the correct account. |
Currency | The currency in which the mileage rate is displayed. |
Applicable countries (optional) | The countries where this rate applies. Yokoy uses the trip country to determine eligibility. |
Rate | The fixed reimbursement amount per km or mile. |
Tax rate | If you want to automatically calculate applicable tax amounts, select the tax rate to apply. |
Valid from (optional) | The date from which the rate is active. |
Valid until (optional) | The date until which the rate is active. |
Minimum mileage (optional) | Define the minimum number of kilometers (or miles) that are required to activate the mileage rate. |
Maximum mileage (optional) | Define the maximum number of kilometers (or miles) that are covered by the mileage rate. |
Description (optional) | Include a description for the mileage rate, if needed. |
Priority (optional) | Prioritize the mileage rate by entering a number. A higher number indicates a higher priority. This enables Yokoy to automatically assign a mileage rate to an expense report. |
Minimum distance for reimbursement (optional) | The minimum trip distance required for a reimbursement to be calculated. Trips below this distance are reimbursed at zero. |
Attachment required | Turn on this option to require that employees upload a supporting document to mileage expenses. |
Click Save to save the rate as a draft or Activate to make it available immediately.
🚧 Caution
A mileage rate can't be used until it's activated. Make sure to activate it once you've finished entering all the details.
Linking a tax rate
When you select a tax rate in the Tax rate field, Yokoy automatically calculates the tax amount on every mileage expense that uses this rate. This applies to both expenses created manually by employees and those generated automatically as part of a trip.
If the employee or a reviewer changes the distance on the expense, Yokoy recalculates the tax automatically to match the updated amount.
Example: Sarah's company links a 20% tax rate to their standard simple mileage rate of £0.45/km. When Sarah drives 80 km and submits her expense, Yokoy calculates her reimbursement as £36.00 and automatically shows a tax amount of £7.20 on the expense form—without Sarah needing to enter anything.
✏️ Note
If no tax rate is selected, the tax field on the mileage expense will be empty. However, employees can add tax and choose the tax rate manually.
Assigning the rate to a policy
A mileage rate only becomes available to employees once it's linked to a policy. To do this:
Go to Admin > Policies.
Select the policy you want to apply the rate to.
Under Applicable mileage rates, select the rate you just created.
Click Save.
To learn more about how Yokoy calculates mileage reimbursements and applies tax, see How mileage expenses are calculated.