Claiming mileage when self-employed: the 2025/26 and 2026/27 rates
If you drive a van or car for work, you can claim a flat rate per business mile instead of working out actual running costs. The rate changed on 6 April 2026, so your 2025/26 return and next year's use different figures.
Checked against GOV.UK on 23 October 2026. General information for sole traders in England, Wales and Northern Ireland, not tax advice. Scottish Income Tax rates are different.
The flat rates
| Vehicle | 2025/26 | 2026/27 |
|---|---|---|
| Cars and vans, first 10,000 business miles | 45p | 55p |
| Cars and vans, after 10,000 miles | 25p | 25p |
For the 2025/26 return due 31 January 2027, use 45p.
Worked examples
2025/26, 12,000 business miles: 10,000 × 45p = £4,500, plus 2,000 × 25p = £500. Total £5,000.
2026/27, same miles: 10,000 × 55p = £5,500, plus £500. Total £6,000.
The rules
- You can't use the flat rate for a vehicle you've already claimed capital allowances on, or included as an expense.
- Once you use the flat rate for a vehicle, you must keep using it for that vehicle.
- It covers fuel, insurance, repairs and servicing. Parking and tolls can be claimed on top.
- Only business journeys count, for example to temporary sites, suppliers and customers.
Keep a mileage log
Record date, from, to, reason and miles. Noting the site on each week's invoice or timesheet makes this easier at year end. Check figures with the mileage allowance calculator.
Flat rate or actual costs?
For a cheap van doing lots of miles, the flat rate is often simpler and better. For an expensive van bought for the business, actual costs plus capital allowances may give more. See also what subbies can claim, and charging mileage to clients, which is a different thing.
This guide is part of our Self Assessment guides for the self-employed.
Free: The UK Contractor's Cheat Sheet 2026/27
CIS rates, overtime maths, tax dates, mileage, VAT and late payment, on 2 pages. Keep it on your phone or print it for the van.
Frequently asked questions
What is the mileage rate for 2025/26?
45p a mile for the first 10,000 business miles in a car or van, then 25p.
What is the mileage rate for 2026/27?
55p a mile for the first 10,000 miles, then 25p, from 6 April 2026.
Can I claim fuel and mileage?
No. The flat rate already covers fuel and running costs.
Can I switch back to actual costs?
Not for the same vehicle.
Sources
- Simplified expenses: vehicles – GOV.UK
- Expenses if you're self-employed – GOV.UK
- Business records if you're self-employed – GOV.UK
This guide is general information, not legal, tax or financial advice. Rules and rates change, so check the linked GOV.UK pages for the current position.