Self-employed people in the UK can deduct business mileage from their profits using HMRC’s simplified expenses method. The rate is 45p per mile for the first 10,000 business miles and 25p per mile above 10,000 miles in the tax year. You claim this on your Self Assessment tax return in the self-employment section — no fuel receipts required.
This guide walks through exactly how to claim, what counts as a qualifying journey, how to complete the return, and whether the flat mileage rate or actual vehicle costs is better for your situation.
Who Can Claim Mileage on Self Assessment?
You can use the simplified mileage method on Self Assessment if you are:
- Sole trader or self-employed individual using your own vehicle for business journeys
- A partner in a business partnership claiming vehicle expenses through your partnership return
- Using a car, van, or motorcycle that you own privately (not through a limited company)
You cannot use this method if:
- You have previously claimed capital allowances on the same vehicle
- The vehicle is owned by a limited company (different rules apply — use the company car or advisory rate system)
- You are an employee (employees claim Mileage Allowance Relief via P87 or through their Self Assessment return, not simplified expenses)
What Counts as a Qualifying Business Journey?
HMRC only allows the mileage deduction for genuine business travel. The journey must have a clear business purpose.
Qualifying journeys:
- Visiting clients, customers, or patients at their premises
- Travelling between two different business sites
- Attending a business meeting, trade show, or conference away from your base
- Collecting business supplies or materials
- Travelling to a temporary workplace (a location you go to for less than 24 months)
Non-qualifying journeys — cannot be claimed:
- Ordinary commuting from home to a regular, permanent place of work
- Personal errands or private journeys
- Driving to the same fixed workplace every day (even if you work from home sometimes)
Mixed journeys: If a journey is partly business and partly personal (for example, visiting a client and then doing personal shopping), you can only claim the business portion. Log the business mileage separately.
The 2026/27 HMRC Mileage Rates for Self Assessment
| Vehicle Type | First 10,000 Miles | Above 10,000 Miles |
|---|---|---|
| Cars and vans | 45p per mile | 25p per mile |
| Motorcycles | 24p per mile | 24p per mile |
| Bicycles | 20p per mile | 20p per mile |
These rates have been unchanged since 2011. The 10,000-mile threshold resets each tax year (6 April to 5 April).
Step-by-Step: How to Claim Mileage on Your Self Assessment Return
Step 1: Total Your Business Miles for the Year
Add up all qualifying business miles from your mileage log. Separate car miles from motorcycle or bicycle miles if you use more than one vehicle type.
Example: James is a self-employed plumber. He drove 11,400 miles visiting customers in the 2025/26 tax year. He also cycled 200 miles to local jobs.
- Car: 11,400 miles
- Bicycle: 200 miles
Step 2: Calculate Your Deduction
Apply the correct rates to each vehicle:
| Vehicle | Miles | Rate | Deduction |
|---|---|---|---|
| Car — first 10,000 | 10,000 | 45p | £4,500 |
| Car — above 10,000 | 1,400 | 25p | £350 |
| Bicycle | 200 | 20p | £40 |
| Total deduction | £4,890 |
Step 3: Enter on Your Self Assessment Return
Log in to HMRC Online Services and navigate to your Self Assessment return:
- Self-employment section → select your business
- Expenses → look for “Vehicle, travel and accommodation costs” or the “Simplified expenses” section
- If using simplified expenses: enter total business miles for each vehicle type — HMRC calculates the £ amount automatically
- If entering the £ amount manually: enter your calculated total (e.g., £4,890) in the vehicle expenses box
Paper return (SA103S or SA103F):
- Short return (SA103S): Box 18 — “Motor expenses”
- Full return (SA103F): Box 27 — “Motor expenses”
- Enter the total £ deduction calculated using the approved rates
Step 4: Do Not Also Claim Actual Costs
If you use the simplified mileage rate, do not additionally claim:
- Fuel costs
- Insurance premiums
- Road tax
- MOT or servicing
- Loan interest or hire purchase payments on the vehicle
The flat mileage rate is all-inclusive — it is meant to cover all running costs. Double-claiming is an HMRC compliance risk.
Mileage vs Actual Vehicle Costs: Which Is Better?
You must choose one method per vehicle and stick with it for the life of that vehicle in your business. Compare before you commit in year one.
| Factor | Simplified Mileage | Actual Costs |
|---|---|---|
| Record-keeping | Miles only — simple | Receipts for all costs |
| Fuel receipts needed | No | Yes |
| Best for | Low mileage; newer expensive cars | High mileage; older/cheaper vehicles |
| Capital allowances | Not available | Available on purchase price |
| Flexibility | Cannot switch later | Cannot switch later |
When actual costs win:
If you drive 20,000 business miles in a van and your total running costs (fuel, insurance, servicing, road tax) are £9,000:
- Mileage method: (10,000 × 45p) + (10,000 × 25p) = £7,000 deduction
- Actual costs: £9,000 deduction (plus potential capital allowances on the van)
Actual costs give £2,000 more in deductions in this scenario.
When mileage wins:
If you drive 5,000 business miles in a newer car with high running costs:
- Mileage method: 5,000 × 45p = £2,250 deduction
- Actual costs: £1,800 (fuel only, since the car is modern and other costs are minimal)
The flat rate exceeds actual costs here — simpler and more generous.
Rule of thumb: High mileage drivers (over 15,000 business miles/year) with working vehicles (vans, older cars) usually benefit from actual costs. Low-to-medium mileage drivers with newer personal cars usually benefit from the flat rate.
Keeping a Mileage Log — What HMRC Requires
HMRC may request evidence to support mileage claims. You must be able to produce a log showing:
- Date of each journey
- Start and end location (or a clear business purpose if exact locations are sensitive)
- Reason for the journey (e.g., “client visit — ABC Ltd”)
- Miles driven for that journey
- Running total of business miles in the year
How to log:
- Spreadsheet (simple, HMRC-accepted)
- Mileage tracking apps: MileIQ, TripLog, Driversnote (auto-log via GPS)
- Paper logbook kept in the car
Keep records for at least 5 years from the 31 January Self Assessment deadline (e.g., for the 2025/26 return due 31 January 2027, keep records until at least January 2032).
HMRC compliance tip: Reconstructed mileage logs (created after the fact from memory or calendar entries) are valid as long as they are accurate, but contemporaneous logs held throughout the year are far safer if HMRC opens an enquiry.
Multiple Vehicles: How the Rules Work
If you use more than one vehicle for business in the same tax year:
- Each vehicle has its own 10,000-mile threshold — the threshold does not pool across vehicles
- Example: Car A — 8,000 miles; Car B — 6,000 miles. Both vehicles are entirely within the 10,000-mile first band, so all miles are claimed at 45p each
- You must use the same method (mileage or actual costs) for each vehicle separately
If you switch vehicles mid-year (e.g., buy a new car), the new vehicle starts its own 10,000-mile count fresh.
Claiming Back Years
If you forgot to claim mileage in a previous year, you can amend your Self Assessment return:
- Online amendments: Available for up to 12 months after the filing deadline (e.g., the 2024/25 return can be amended until 31 January 2027)
- Older years: Write to HMRC (or call 0300 200 3310) to request an amendment for tax years up to 4 years old
Keep in mind: if you used a different method in prior years, switching to the mileage rate for past years may not be possible — the method you chose at the start must be applied consistently for that vehicle.
Related UK Tax Resources
- HMRC Approved Mileage Rates 2026/27 — the rates, who can use them, and employee vs. self-employed rules
- UK Self-Employed Tax Guide — all allowable expenses, National Insurance, and filing obligations
- HMRC Flat Rate Expenses Guide — fixed deductions for employees who cannot claim actual costs
- Self Assessment Guide 2026/27 — how to file your return from start to finish
- UK Taxes Hub — income tax, capital gains, VAT, and all UK tax guides
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