Business mileage for sole traders: the simplified rates
If you use your own car, van or motorcycle for work, you can claim a flat rate per business mile instead of working out what the vehicle actually costs to run. The rate for cars and vans went up on 6 April 2026. Here is how it works.
The rates
Cars and goods vehicles (vans): 55p a mile for the first 10,000 business miles in the tax year, then 25p a mile. This applies from the 2026 to 2027 tax year, which started on 6 April 2026.
Before 6 April 2026 the first 10,000 miles were 45p a mile. Miles after 10,000 stay at 25p.
Motorcycles: 24p a mile, whatever the distance.
Example from GOV.UK: 11,000 business miles by car in 2026 to 2027 is 10,000 at 55p plus 1,000 at 25p, so £5,750.
Who can use them
Sole traders and business partnerships with no companies as partners. Limited companies cannot use simplified expenses.
What you give up
The flat rate replaces the actual cost of buying and running the vehicle, so you cannot also claim its fuel, insurance, repairs or servicing.
You cannot use it for a vehicle you have already claimed capital allowances on, or one you have included as an expense when working out profits.
Once you use the flat rate for a vehicle, you keep using it for as long as that vehicle is used in your business. You can use flat rates for one vehicle and actual costs for another.
What you can still claim
Other travel costs on top, such as parking and train fares.
Keep a log
Record each business journey: the date, where you went and why, and the miles. Travel between home and a regular place of work is usually not business mileage.
Logging mileage with Snapfile
Send a WhatsApp message like "Drove 40 miles to Leeds". Snapfile records the journey, counts your business miles for the tax year, and applies the car and van rate for that year, switching to 25p after 10,000 miles. On a motorbike, say so (for example "40 miles on the motorbike") and it uses the 24p motorcycle rate. Or work out a claim now with the free mileage calculator.
Common questions
Can I still claim 45p a mile?
For journeys before 6 April 2026, yes. From the 2026 to 2027 tax year the rate for the first 10,000 business miles in a car or van is 55p, then 25p.
Can I claim fuel as well as the mileage rate?
No. The flat rate replaces fuel, insurance, repairs and other running costs for that vehicle. You can still claim parking and other travel such as train fares.
Can landlords use the mileage rates?
Landlords can claim mileage rate deductions for business motoring for their letting business instead of actual costs.
Is there a quick way to work out my claim?
Yes. The free mileage calculator shows the claim and the working, including the switch to 25p after 10,000 miles.
Sources: GOV.UK: Simplified expenses if you're self-employed: vehicles. This is general information, not tax advice; check GOV.UK or an accountant for your situation.
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