Back to Blog

HMRC Mileage Rates 2026/27: How to Claim Every Mile

Published 5 April 2026 · 6 min read

Current HMRC mileage rates (2026/27)

Vehicle type	First 10,000 miles	Over 10,000 miles
Cars & vans	45p	25p
Motorcycles	24p	24p
Bicycles	20p	20p
Business passengers	+5p per mile per passenger

These rates apply equally to petrol, diesel, hybrid, and electric vehicles. HMRC has not introduced separate EV rates.

What counts as a business journey?

• Travelling to client premises, job sites, or suppliers
• Meetings, conferences, or training courses
• Visiting your bank or post office for business reasons
• Trips to temporary workplaces (under 24 months)
• Multiple site visits in a day (e.g. delivery drivers, tradespeople)

Worked examples

Example 1: Mobile hairdresser

You drive 8,000 business miles visiting clients at their homes.

Claim: 8,000 × 45p = £3,600

Tax saving at 20%: £720

Example 2: Electrician with high mileage

You drive 15,000 business miles to job sites across the region.

Claim: (10,000 × 45p) + (5,000 × 25p) = £4,500 + £1,250 = £5,750

Tax saving at 20%: £1,150. At 40%: £2,300

Example 3: Courier with business passengers

You drive 12,000 miles and carry a colleague on 3,000 of those miles.

Mileage claim: (10,000 × 45p) + (2,000 × 25p) = £5,000

Passenger claim: 3,000 × 5p = £150

Total: £5,150

Mileage rates vs actual costs: which saves you more?

As a sole trader, you choose one method per vehicle and must stick with it for as long as you use that vehicle in your business.

Use mileage rates (simplified expenses) when:

• Your vehicle is fuel-efficient or you drive an EV (lower actual costs per mile)
• You drive fewer than 10,000 miles (the 45p rate is generous)
• You want simple record keeping — just log the miles

Use actual costs when:

• You drive a high-cost vehicle (fuel, insurance, and depreciation exceed 45p/mile)
• You have a car loan or lease with high monthly payments
• You drive very high mileage (the 25p rate above 10,000 miles is low)

For most sole traders driving under 15,000 business miles in a typical car, the mileage rates are the better deal. The break-even point is roughly where actual per-mile costs exceed 45p — typically expensive vehicles with high insurance.

What HMRC requires in your mileage log

For each business journey, record:

1. Date of the journey
2. Start and end location (or description: "Office to Client A")
3. Purpose of the journey
4. Miles driven
5. Vehicle used (if you use more than one)

That's it. HMRC doesn't require GPS proof, but a contemporaneous log (recorded at the time, not from memory months later) carries more weight in an enquiry.

How to track mileage without the hassle

Most people start with a spreadsheet, then stop updating it by March. The easiest approach is to log each trip on your phone right after you drive it.

PocketReceipt has mileage tracking built in. Log trips manually or use GPS, and the app calculates your HMRC claim automatically at 45p/25p rates. It tracks per-vehicle and supports both the AMAP and actual cost methods. Export a year's mileage as CSV or PDF in one tap.

Can I claim mileage AND fuel receipts?

No. The mileage rate (45p/25p) is designed to cover fuel, insurance, road tax, MOT, servicing, and depreciation. You cannot claim fuel receipts on top. It's one or the other:

• Mileage rates (simplified expenses) — just log the miles, no receipts needed
• Actual costs — keep every fuel receipt, insurance document, and maintenance invoice

However, you CAN claim parking, tolls, and congestion charges separately under either method — those are not covered by the mileage rate.

Electric vehicles and the 45p rate

HMRC applies the same 45p/25p AMAP rate to electric vehicles. Since EVs typically cost 4–7p per mile in electricity, the mileage rate is extremely generous for EV drivers. If you drive an EV, the simplified expenses method almost certainly saves you more.

Related guides: Free HMRC mileage calculator · Every expense you can claim · Best receipt scanner apps · Self Assessment deadlines