Self-Employed Mileage Rate 2026/27: Now 55p a Mile
The flat mileage rate for self-employed people went up from 45p to 55p a mile on 6 April 2026. If you are a sole trader and claim your car or van by the mile, every one of your first 10,000 business miles this tax year is now worth 10p more off your taxable profit.
Checked against HMRC’s guidance on GOV.UK on 06/10/2026.
The rates for 2026/27
| Vehicle | 2026/27 tax year | Before 6 April 2026 |
|---|---|---|
| Cars and goods vehicles (vans), first 10,000 miles | 55p | 45p |
| Cars and goods vehicles, after 10,000 miles | 25p | 25p |
| Motorcycles | 24p | 24p |
A worked example
HMRC’s own example: you drive 11,000 business miles in the year.
- 10,000 miles × 55p = £5,500
- 1,000 miles × 25p = £250
- Total you can claim: £5,750
At last year’s 45p, the same miles came to £4,750, so this year’s claim is £1,000 bigger.
What the flat rate covers
The mileage rate replaces the real costs of buying and running the vehicle: fuel, insurance, repairs and servicing. You cannot claim those as well. You can still claim parking and other travel, such as train fares, on top.
Who can use it
- Sole traders, and partnerships with no companies as partners.
- Not limited companies, or partnerships that include a limited company.
It works for cars, goods vehicles such as vans, and motorcycles. It does not work for cars designed for commercial use, such as black cabs.
The rules that catch people out
- You cannot switch a vehicle over. If you have already claimed capital allowances on a vehicle, or included its cost as an expense, you cannot use the mileage rate for it.
- Once you start, you stay. When you use the flat rate for a vehicle, you must keep using it for as long as you use that vehicle in your business.
- Business miles only. Personal driving, and travel between home and work, cannot be claimed.
- Keep a record of your business miles. HMRC can ask to see it.
If you are not sure whether miles or real costs come out better for your van, HMRC has a simplified expenses checker on GOV.UK, linked below.
How Mint Books helps
Mint Books logs your business trips and works out each claim at the current HMRC rate, so 55p for the first 10,000 miles of a car or van and 25p after that. It keeps count of the year’s miles for you, so the rate drops to 25p at the right point, and every trip sits in your records ready for your tax return.
Want to know what else you can claim? Read our guide to allowable expenses for self-employed electricians.
See plans and start a free trial
Sources
This guide is general information, not tax advice. If your situation is complicated, speak to an accountant.
