If you use your personal vehicle for business in the UK, you can claim mileage allowance from HMRC. The approved mileage rates let you deduct a set amount per business mile — no need to track individual fuel receipts, insurance, or maintenance costs. This guide covers the current rates, how to keep a proper mileage log, and when it makes sense to use actual costs instead.
HMRC Approved Mileage Rates 2026
| 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 |
If you carry a passenger on a business trip, you can claim an additional 5p per mile per passenger.
Note: These rates have been frozen since 2011. In a Hansard debate on 10 March 2026, there was active parliamentary pressure to update them, with the Chancellor acknowledging that motoring costs have evolved significantly. Check GOV.UK for the most current rates in case they are updated.
Who Can Claim Mileage Allowance
- Self-employed individuals — using simplified expenses on their Self Assessment
- Employees — for business travel not reimbursed by their employer (via Mileage Allowance Relief)
- Company car users — different Advisory Fuel Rates apply, not the standard mileage rates above
Commuting does not count. Travel from home to your regular place of work is not business mileage. Business miles are journeys to client sites, meetings, temporary workplaces, or business errands.
How to Keep a Mileage Log
HMRC does not prescribe a specific format, but your mileage log should record:
- Date of each journey
- Start and end points (or a description of the route)
- Business purpose of the trip
- Miles driven
You do not need to record your odometer readings, but keeping a consistent log throughout the year is essential. A simple spreadsheet works, or use the SparkReceipt mileage tracker to log trips from your phone.
Simplified Expenses vs Actual Costs
Self-employed individuals have two options for vehicle expenses:
Option 1: Simplified Expenses (Mileage Rate)
Use HMRC’s flat rates (45p/25p per mile). You cannot also claim for fuel, insurance, repairs, or vehicle depreciation separately. The mileage rate is intended to cover all vehicle costs.
Best for: Lower annual mileage, newer/cheaper vehicles, those who want simplicity.
Option 2: Actual Costs
Track all actual vehicle expenses — fuel, insurance, repairs, road tax, MOT, breakdown cover, finance interest — and claim the business-use proportion based on your mileage split. You must keep receipts for everything and calculate your business-use percentage.
Best for: High annual mileage, expensive running costs, those comfortable with detailed record keeping.
Important: Once you choose a method for a particular vehicle, you must stick with it for as long as you use that vehicle for business. You cannot switch between simplified and actual costs.
If using actual costs, scan every fuel and maintenance receipt with an AI receipt scanner — petrol station receipts are printed on thermal paper that fades within months.
Claiming Mileage on Self Assessment
If you are self-employed, claim mileage on your Self Assessment tax return under business expenses. Under Making Tax Digital, your mileage records must be kept digitally from April 2026.
For the full list of deductible expenses, see our guide to self-employed expenses in the UK. For record keeping rules, see HMRC record keeping requirements.
This article is for informational purposes only and does not constitute tax advice. Consult a qualified accountant or tax adviser for your specific situation.
