Travel time and mileage on contractor invoices
Whether you can bill for travel is a matter of what you agreed with the client, not a rule. What matters is agreeing it up front and showing it clearly. It also helps to know that charging a client mileage and claiming mileage on your tax return are two different things.
On this page
First: is travel chargeable at all?
No law says a client must pay for your travel, and none says they can't. It depends on your agreement. Common arrangements are:
- Travel included in the rate: the default for most agency and site work. Your day rate covers getting there.
- Mileage at an agreed rate per mile, for jobs beyond a set distance or for driving between sites during the day.
- Travel time at an hourly rate (sometimes a reduced one), often for call-out work or remote sites.
- A fixed travel charge per visit or per day, which is simple to check.
Whatever you choose, put it in your quote or rate card before the work starts. Travel added to an invoice without warning is one of the most common reasons an invoice gets queried.
Worked example: mileage
An engineer agrees £0.45 a mile for travel beyond 20 miles each way. A job is 48 miles each way, so the chargeable distance is (48 − 20) × 2 = 56 miles a day. Over 3 days:
| Description | Qty | Rate | Amount |
|---|---|---|---|
| Labour, Mon 12/10 – Wed 14/10 | 3 days | £190.00 | £570.00 |
| Mileage beyond 20 miles each way (56 miles/day) | 168 miles | £0.45 | £75.60 |
| Total | £645.60 | ||
Show the distance and the rate, not just a lump sum, so the client can check it against a map. If your rate is a day rate, our day rate to hourly rate guide shows how to price part days spent travelling.
Worked example: travel time
A tradesperson on £32.00 an hour agrees to charge travel time at half rate (£16.00 an hour) on a job 1 hour 15 minutes each way. Per day that's 2.5 hours × £16.00 = £40.00. Showing it as "Travel time, 2.5 h @ £16.00" on its own line is clearer than folding it into the labour hours, and it stops anyone thinking you're billing extra hours on site.
Mileage you charge vs mileage you claim
These are easily confused:
- What you charge a client is part of your income, the same as your labour. It goes into your turnover.
- What you claim as an expense reduces your taxable profit. If you're a sole trader using simplified expenses, GOV.UK sets flat rates per business mile. For the 2026 to 2027 tax year these are 55p a mile for cars and goods vehicles for the first 10,000 miles and 25p after that (45p for the first 10,000 before 6 April 2026), and 24p for motorcycles. The same rates are on the free 2-page cheat sheet, a quick reference for contractors.
So charging a client 45p a mile doesn't stop you claiming business mileage at the simplified rate, as long as the journeys are allowable business travel. GOV.UK says you cannot claim for non-business travel or travel between home and work, so check its travel expenses guidance (or ask HMRC) if you are not sure whether a journey counts. Once you use the flat rate for a vehicle, you must keep using it for as long as you use that vehicle for your business.
This is general information, not tax advice.
Records to keep
- A mileage log: date, from, to, purpose and miles. You need it for both the invoice and your tax return.
- Parking and tolls, with receipts. GOV.UK lets you claim parking on top of simplified mileage.
- The written agreement on what's chargeable, such as an email confirming "mileage at 45p beyond 20 miles".
If you're VAT registered
Travel you recharge to a client is normally part of the price of your service, so it's treated the same way as the labour for VAT, not as a separate tax-free item. See our VAT on contractor invoices guide for how VAT and the construction reverse charge apply.
Worked example: travel time and mileage on one invoice
Priya, a self-employed engineer, has agreed to charge 45p a mile and travel time at half her £40 hourly rate for a job outside her normal area. One week:
| Line | Qty | Rate | Amount |
|---|---|---|---|
| Labour | 32 h | £40.00 | £1,280.00 |
| Travel time (agreed at 50%) | 6 h | £20.00 | £120.00 |
| Mileage, 3 round trips × 84 miles | 252 mi | £0.45 | £113.40 |
| Total | £1,513.40 |
Keep each charge on its own line so the client can check it against what was agreed. The 45p is simply a price Priya negotiated. It isn't HMRC's rate: GOV.UK's approved mileage rate for cars and vans is 55p a mile for the first 10,000 business miles from the 2026 to 2027 tax year (it was 45p from 2011 up to 5 April 2026), and 25p after that. What you charge a client and what you claim against tax are separate decisions.
Parking, tolls and congestion charges
If the client agrees to cover them, list them at cost with a reference, e.g. "Parking, NCP Manchester, 7 Oct: £14.00", and keep the receipts. Don't add a markup unless it's agreed.
Put it in your terms
One sentence in your quote or terms saves most arguments: "Travel beyond 20 miles from Leeds is charged at 45p per mile; travel time at £20 per hour." Then the invoice is just arithmetic.
Free: Tax Year Dates & Expenses Checklist 2026/27
Every Self Assessment date for 2026/27, the tax and NI rates, and a tick-list of expenses you can claim. 2 pages.
Frequently asked questions
Can I charge a client for travel time?
Yes, if you agreed it in advance. Many contractors include travel in their rate unless a job is unusually far away.
What mileage rate should I charge clients?
Whatever you agree. Many people use a figure close to HMRC's simplified rates, but the client rate is a commercial choice.
Is mileage I charge a client taxable?
Yes. It's part of your income. You may separately be able to claim allowable business mileage as an expense.
What is HMRC's simplified mileage rate for 2026 to 2027?
For cars and goods vehicles, 55p a mile for the first 10,000 business miles and 25p after that. Check GOV.UK for the current rates.
Sources
- Simplified expenses if you're self-employed: vehicles – GOV.UK
- Travel – mileage and fuel rates and allowances (updated 21 May 2026) – GOV.UK
- Expenses if you're self-employed: travel – GOV.UK
- Invoices – what they must include – 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.