Self-Employed Mileage Allowance and Vehicle Claims
Claim your self-employed mileage allowance using HMRC rates (45p/25p) or actual vehicle costs. Compare methods, see examples, and start saving.
Key Actions
- Decide between simplified mileage rates and actual costs for your vehicle
- Start a mileage log recording every business journey (date, destination, miles, purpose)
- Calculate your annual business mileage to estimate your claim
- Keep fuel receipts and vehicle cost records if using actual costs
- Check if you've previously claimed capital allowances on your vehicle before choosing a method
The self-employed mileage allowance lets you deduct the cost of business driving from your taxable profit, and it is one of the largest tax deductions available to sole traders and freelancers in the UK. Whether you drive to client meetings, deliver goods, or travel between job sites, you can claim vehicle expenses against your income — reducing your tax bill.
This guide covers the two methods for claiming vehicle expenses (HMRC mileage rates vs actual costs), which journeys qualify, what records you need to keep, and common mistakes to avoid. Vehicle costs sit alongside other allowable expenses you can claim as self-employed.
How to Claim Vehicle Expenses: Mileage Rates vs Actual Costs
Self-employed vehicle expenses can be claimed using one of two methods: simplified mileage rates or actual costs. You choose one method per vehicle, and the choice matters — it affects how much you can claim and what records you need.
| Factor | Simplified mileage rates | Actual costs |
|---|---|---|
| How it works | Flat rate per business mile | Claim real vehicle costs proportionally |
| Record keeping | Mileage log only | Receipts, invoices, and mileage log |
| Best for | Low vehicle costs, simple record keeping | High vehicle costs, expensive vehicles |
| Switching | Cannot switch to actual costs for the same vehicle later | Can switch to mileage rates (but not back) |
Important: Once you use simplified mileage rates for a vehicle, you cannot switch to actual costs for that vehicle. And if you've previously claimed capital allowances on a vehicle, you cannot use simplified rates for it.
HMRC Simplified Mileage Rates for Self-Employed
Simplified mileage rates are flat-rate amounts per business mile set by HMRC, used instead of tracking every fuel receipt and repair bill. You multiply your business miles by the approved rate to calculate your claim.
HMRC Approved Mileage Rates (2025/26)
| Vehicle type | First 10,000 miles | Over 10,000 miles |
|---|---|---|
| Cars and goods vehicles (vans) | 45p per mile | 25p per mile |
| Motorcycles | 24p per mile | 24p per mile |
These rates cover fuel, insurance, road tax, MOT, servicing, repairs, and depreciation. You cannot claim these costs separately on top of the mileage rate.
However, you can still claim separately for:
- Parking fees for business trips
- Congestion charges and road tolls
- Train, bus, or taxi fares for other journeys
Worked Example: Mileage Rate Claim
Sarah is a freelance photographer who drives 14,000 business miles in the 2025/26 tax year.
| Calculation | Amount |
|---|---|
| First 10,000 miles × 45p | £4,500 |
| Next 4,000 miles × 25p | £1,000 |
| Total mileage claim | £5,500 |
| Plus: parking fees | £320 |
| Total vehicle expense claim | £5,820 |
Sarah claims £5,820 on her Self Assessment return without needing to keep fuel receipts, MOT invoices, or insurance documents for the claim calculation.
When to Choose Mileage Rates
The flat rate method tends to work well if:
- Your vehicle costs are relatively low (older car, low insurance)
- You want simple record keeping — just a mileage log
- You haven't previously claimed capital allowances on the vehicle
- You drive a moderate number of business miles
Actual Vehicle Costs Method for Sole Traders
The actual costs method means claiming the real expenses of running your vehicle, adjusted for the proportion of business use.
What You Can Claim
- Fuel
- Insurance
- Road tax
- MOT
- Servicing and repairs
- Breakdown cover
- Lease payments (if applicable)
- Parking and tolls for business trips
If you own the vehicle, you can also claim capital allowances on the purchase price — spreading the cost over several years based on the vehicle's CO2 emissions.
Calculating the Business Proportion
You need to work out what percentage of your total mileage is for business. Keep a mileage log for the full year, then apply the business percentage to your total vehicle costs.
Example: James drives 20,000 miles per year, of which 12,000 are business miles. His business proportion is 60%.
| Annual vehicle cost | Amount | Business claim (60%) |
|---|---|---|
| Fuel | £2,400 | £1,440 |
| Insurance | £600 | £360 |
| Road tax | £180 | £108 |
| Servicing and MOT | £450 | £270 |
| Breakdown cover | £80 | £48 |
| Total | £3,710 | £2,226 |
James also claims capital allowances on the vehicle purchase price and adds parking fees for business trips.
When to Choose Actual Costs
The actual cost method tends to be better if:
- You drive an expensive vehicle with high running costs
- Your business proportion is high (making the actual costs larger than the flat rate)
- You want to claim capital allowances on the vehicle purchase
- You lease a vehicle (lease payments can be significant)
Which Journeys Qualify as Business Mileage?
Business mileage is any journey made wholly and exclusively for work purposes, excluding ordinary commuting. HMRC distinguishes between business travel (claimable) and commuting (not claimable).
Business travel — you can claim:
- Travelling to meet clients or customers
- Driving to a temporary workplace (a site you work at for less than 24 months)
- Delivering goods or collecting supplies
- Visiting your accountant or bank for business reasons
- Travelling between two workplaces in the same day
- Journeys to networking events or trade shows
Commuting — you cannot claim:
- Travelling from home to a regular, fixed workplace
- Journeys to the same office or workshop every day
The home-based exception: If you work from home as your main base and travel to client sites or temporary locations, those journeys are business travel — not commuting. This applies to most freelancers and sole traders who don't have a separate business premises.
Example: Emma is a self-employed IT consultant who works from home. She drives to a client's office twice a week. These are business journeys because her home is her main place of work and the client's office is a temporary workplace. If Emma rented an office and drove there every day, that would be commuting.
How to Keep a Mileage Log for HMRC
A mileage log is a record of every business journey you make, including the date, destination, purpose, and miles driven. Regardless of which method you use, you need one — it is your evidence if HMRC asks about your claim.
For each business journey, record these four details:
- Date of the trip
- Starting point and destination
- Purpose of the journey (e.g., "client meeting with ABC Ltd", "site visit")
- Miles driven (round trip)
You can keep your log in:
- A notebook or diary
- A spreadsheet
- A mileage tracking app (many link to your phone's GPS)
- Your accounting software
Under Making Tax Digital (from April 2026 for qualifying income over £50,000), your mileage records need to be in digital format — either in MTD-compatible software or a spreadsheet with bridging software. If you're approaching the MTD threshold, it's worth setting up a digital mileage log now. See our Making Tax Digital guide for more.
Tip: Many self-employed people find it helpful to record journeys as they happen. Trying to reconstruct a year's worth of mileage from memory in January is likely to be inaccurate and may prompt questions from HMRC. For broader guidance on documentation, see our guide on what records to keep as self-employed.
CIS Subcontractors: Claiming Travel to Sites
If you're a CIS subcontractor travelling between construction sites, the same rules apply. Travel to a temporary site (under 24 months) is business travel. Travel to a single site where you work permanently is commuting.
Most subcontractors work on different sites and can claim mileage for travelling between them. See our guide on CIS subcontractor expenses for more on what construction workers can claim.
Common Mileage Claim Mistakes to Avoid
Here are the five most common errors HMRC sees with self-employed vehicle expense claims:
- Claiming commuting miles as business travel. If you drive to the same workplace every day, that's commuting — even if you're self-employed. Only temporary or varied workplaces qualify.
- Switching methods for the same vehicle. Once you start using mileage rates for a vehicle, you cannot switch to actual costs for that vehicle. It's worth considering this carefully before you start.
- Claiming mileage rates plus actual costs. The mileage rate covers fuel, insurance, tax, and repairs. You cannot claim both. The only extras allowed on top of mileage rates are parking, tolls, and congestion charges.
- Forgetting to keep a mileage log. Without a log, you have no evidence for your claim. HMRC can disallow the entire vehicle expense if you cannot show how many business miles you drove.
- Claiming personal miles. If you use your vehicle for both personal and business trips, only the business portion counts. A mileage log separates the two.
Simplified Mileage vs Actual Costs: Which Saves More Tax?
Example: Tom drives 15,000 business miles and 5,000 personal miles per year. His total vehicle costs are £4,800 (fuel, insurance, tax, servicing).
| Method | Calculation | Claim |
|---|---|---|
| Simplified mileage | (10,000 × 45p) + (5,000 × 25p) | £5,750 |
| Actual costs | £4,800 × 75% business use | £3,600 |
In Tom's case, the simplified method gives a higher claim. But if his vehicle costs were £9,000 per year (perhaps leasing a newer vehicle), actual costs at 75% would give £6,750 — more than simplified rates.
It's worth running both calculations before committing to a method for a new vehicle.
Frequently Asked Questions
Can I claim mileage if I use my personal car for business?
Yes. The simplified mileage rates are specifically designed for self-employed people using their own vehicle for business. You claim 45p per mile for the first 10,000 business miles and 25p per mile after that. You don't need to own a "business vehicle" — your personal car qualifies.
What is the HMRC mileage rate for 2025/26?
The approved mileage rate for cars and goods vehicles is 45p per mile for the first 10,000 miles and 25p per mile thereafter. For motorcycles, it's 24p for all miles. These rates have not changed in recent years.
Can I claim bicycle mileage as self-employed?
HMRC's simplified expenses scheme does not include a mileage rate for bicycles. If you use a bicycle for business travel, you can claim actual costs (maintenance, repairs) proportional to business use, but there is no flat rate per mile.
Do I need to keep every fuel receipt?
If you use the simplified mileage rate, you don't need fuel receipts — just a mileage log. If you use actual costs, you need receipts or bank statements for all vehicle expenses you claim.
This guide is for informational purposes only and does not constitute tax, legal, or financial advice. Tax rules change frequently. Always verify current requirements on GOV.UK or consult a qualified accountant for your specific situation.
Official Sources
- Expenses if you're self-employed - GOV.UK
- Simplified expenses: vehicles - GOV.UK
- Simplified expenses checker - GOV.UK
- Claim capital allowances on your vehicle - GOV.UK