Free Tool
HMRC Mileage Allowance Calculator
Work out your business mileage claim at the 2026-27 HMRC rates: 55p a mile for the first 10,000 miles in a van or car, then 25p.
The higher rate covers the first 10,000 business miles in the whole tax year, so earlier months count.
The HMRC Mileage Rates for 2026-27
If you are self-employed you can claim a flat rate for every business mile instead of working out the real cost of running your vehicle. From the 2026-27 tax year the rate for cars and vans went up for the first time since 2011.
- Cars and vans, first 10,000 business miles: 55p a mile (it was 45p before 6 April 2026)
- Cars and vans, every business mile after that: 25p
- Motorcycles: 24p a mile
The 10,000 miles is per tax year, 6 April to 5 April, so miles from earlier in the year count towards it. GOV.UK’s own example: 11,000 business miles is 10,000 at 55p plus 1,000 at 25p, which is £5,750.
Who Can Use the Flat Rate
Sole traders and partnerships with no company partners can use simplified expenses. Limited companies cannot: directors claim mileage from the company as employees instead.
The flat rate replaces the running costs of the vehicle: fuel, insurance, servicing, repairs and road tax. You can still claim parking and other travel, such as train fares, on top.
The Rule That Catches Out Van Owners
You cannot use the flat rate for a vehicle you have already claimed capital allowances on, or whose cost you have already put through as an expense. And once you use the flat rate for a vehicle, you have to keep using it for as long as that vehicle is in the business.
That makes the choice a real one for trades. A van you bought outright and claimed in full in the year you bought it is locked into actual costs. A van used for high business mileage with modest running costs can come out ahead on the flat rate, especially now it is 55p.
If you are weighing up buying a van, run both sides before you make the first claim, because you cannot swap later. GOV.UK has a simplified expenses checker, and your accountant can model it on your real figures.
What Counts as a Business Mile
- Driving between jobs, to suppliers and merchants, and to quote for work
- Driving to a temporary site you are working on for a limited time
- Not ordinary commuting to a permanent base, such as a yard or workshop you go to every day
- Not personal trips, even in the work van
Keep a log of date, start, destination, purpose and miles for every trip. HMRC can ask for it, and a reconstructed log at year end is the first thing that falls apart in an enquiry.
Frequently Asked Questions
What is the HMRC mileage rate for 2026-27?
For self-employed simplified expenses, 55p a mile for the first 10,000 business miles in a car or van, then 25p a mile after that. Motorcycles are 24p a mile. Before 6 April 2026 the car and van rate was 45p.
Can I claim mileage on my work van?
Yes, if you are a sole trader or in a partnership with no company partners, and you have not already claimed capital allowances on the van or put its cost through as an expense. Once you choose the flat rate for that van you must keep using it while the van is in the business.
Is the mileage allowance money back from HMRC?
No. It is an allowable expense that reduces your taxable profit. The tax you save depends on your rate: a basic rate taxpayer saves about 26p in every pound claimed once income tax and Class 4 National Insurance are included.
Does the 10,000 mile limit reset each year?
Yes. It runs per tax year, from 6 April to 5 April, so the first 10,000 business miles from 6 April each year are claimed at the higher rate.
Can I claim parking and tolls as well as mileage?
Parking and other travel costs such as train fares can be claimed on top of the flat rate. Fuel, insurance, servicing and repairs cannot, because the flat rate already covers them.
Rates from GOV.UK simplified expenses guidance, checked September 2026. General guidance for self-employed trades rather than advice for your circumstances, so check with your accountant before choosing between the flat rate and capital allowances.
Every mile and receipt in one place
Traddie keeps your expenses and receipts against the jobs they belong to and syncs them to your accounts, so your year-end figures are already done.
Try Traddie free