Claiming business mileage as a sole trader
Self-employed people can claim a flat rate per business mile instead of working out the actual running costs of a vehicle. This is called simplified expenses.
The 2026/27 rates
For cars and vans the rate is 55p a mile for the first 10,000 business miles in the tax year and 25p after that. Motorcycles are 24p a mile and bicycles 20p. The car and van rate was raised from 45p from 6 April 2026, and the government has said it will review the rates again, so check GOV.UK for the latest figures.
What counts
Business journeys count, such as trips to customers, suppliers and job sites. Normal commuting between home and a fixed workplace does not. Keep a record of the date, the journey, the purpose and the miles for each trip.
Simplified or actual costs?
Once you use simplified expenses for a vehicle, you generally have to keep using that method for the vehicle. Actual costs, with capital allowances, can suit expensive vehicles or very high fuel costs, so it is worth comparing before your first claim.
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