HMRC mileage rates for the self-employed, 2026/27

If you drive for work and you're self-employed, you can usually deduct the cost of those journeys from your profits. HMRC offers two ways of working out the figure, and one of them is a simple flat rate per mile. Here's how it works for 2026/27, in plain English.

The rates from 6 April 2026

Under simplified expenses, a sole trader can claim:

• Cars and vans: 55p per mile for the first 10,000 business miles in the tax year, then 25p per mile after that
• Motorcycles: 24p per mile

The car and van rate for the first 10,000 miles was 45p before 6 April 2026, and has gone up. Plenty of older guides and apps still say 45p, so check the date on whatever you're reading.

What the flat rate covers

The flat rate replaces the actual costs of buying and running your vehicle: fuel, insurance, repairs, servicing and the cost of the vehicle itself. That's the trade-off. You don't need to keep every petrol receipt, but you can't claim those costs as well.

You can still claim other travel costs separately, for example train fares and parking.

An example

Say you're a self-employed gardener, and you drive 12,000 business miles in a van this year.

• First 10,000 miles at 55p = £5,500
• Next 2,000 miles at 25p = £500
• Total claim: £6,000

That £6,000 is deducted from your income when you work out your profit. It's not a refund: how much tax it saves depends on your tax band.

The conditions

• Eligible vehicles. Cars, vans and other goods vehicles, and motorcycles. Cars designed for commercial use, such as black cabs, don't qualify.
• No capital allowances. You can't use simplified expenses for a vehicle you've already claimed capital allowances on, or one whose costs you've included as an expense when working out your profits.
• Stick with it. You don't have to use flat rates for every vehicle, but once you start using them for a vehicle you have to keep using them for as long as you use that vehicle in your business.

If you'd rather claim your actual costs (a proportion of fuel, insurance, repairs and so on, plus capital allowances), that's the other method. Which is better depends on your vehicle, your mileage and your costs. If you're not sure, an accountant can run the numbers once.

What counts as business mileage

Business miles are journeys made for your business: to see a client, collect materials, visit a supplier or travel between jobs. Travelling between your home and a permanent workplace is generally not a business journey. If your situation isn't clear, check GOV.UK or ask an accountant.

What to record

HMRC will want to see how you got your figure, so keep a record of your business journeys. A good record for each trip has:

1. The date
2. Where you started and where you went
3. Why you went (the job or client)
4. How many miles it was

Also note your total miles for the year, and the vehicle you used. Keeping the log as you go is much easier than rebuilding it from a calendar in January. There's more in how to keep a mileage log that stands up.

Check the numbers each April

The rates can change, as they just did. Look at GOV.UK at the start of each tax year rather than relying on last year's figure.

Where Thistle Miles fits

Thistle Miles, which is still in development, is built to log work drives automatically and value them at your country's official rates, so the log builds itself while you work. If you're a sole trader, the page for the self-employed shows how our apps fit together.

This is general information, not tax advice. If you're unsure which method suits you, ask an accountant.