Mileage calculator: 55p a mile or actual costs?

55p a mile for the first 10,000 business miles in a car or van, and 25p a mile after that. Motorcycles are 24p a mile. There is no flat rate for bicycles for the self-employed. From 6 April 2027 the rate after 10,000 miles rises to 35p. Source

For self-employed people using simplified expenses, the rate for the first 10,000 business miles is 55p from 6 April 2026. It was 45p before that, so older guides and calculators may still show 45p. The employee tax-free rate went up to 55p at the same time. Source

£5,500 at the flat rate in a car or van for 2026 to 2027. At 15,000 miles it is £6,750, because miles over 10,000 are at 25p. Source

It depends on the vehicle. The flat rate usually wins for an older car you own outright and drive a lot for work. Actual costs usually win for an expensive vehicle, a new van in the year you buy it, a vehicle on a high lease or rental, or one used mostly for business. The calculator compares both. Source

The whole cost of the vehicle: buying, leasing or renting it, fuel or charging, insurance, servicing, repairs, tyres, road tax and the MOT. You cannot claim any of those on top. Parking and tolls on business journeys can still be claimed separately. Source

No. Fuel is part of what the mileage rate covers. If you want to claim fuel, you claim actual costs for the vehicle instead, and then you cannot use the mileage rate. Source

Not for the same vehicle once you have used the flat rate: you must keep using it for as long as you use that vehicle in the business. You can choose again when you change vehicles. Source

No. The flat rate covers the cost of the vehicle, including lease or rental. If your lease or weekly rental is high, actual costs may work out better. Source

Sole traders and business partnerships made up of individuals, for cars, vans and other goods vehicles and motorcycles. Limited companies cannot. Black cabs, hackney carriages and dual-control driving instructor cars cannot use it, and nor can a vehicle you have already claimed capital allowances on or put through as an expense. Source

No. The 10,000 miles at 55p are shared across all the cars and vans you claim at the flat rate in the year. Miles over that, in any of them, are at 25p. Source

Budget 2026 raises the rate after the first 10,000 miles from 25p to 35p from 6 April 2027. The 55p rate for the first 10,000 miles stays the same. Source

Private hire drivers in an ordinary car can. Drivers of black cabs or hackney carriages cannot, so they claim actual costs instead. Source

24p a mile for every business mile, with no reduced rate after 10,000 miles. Source

No. Simplified expenses cover cars, goods vehicles and motorcycles only. Cycle couriers claim the actual costs of the bike and its upkeep instead. Source

Journeys made for the business: to customers, between jobs, to a supplier or to a temporary site. If you work from home and travel out to different customers, those trips usually count. Ordinary commuting to one permanent workplace does not. Source

HMRC expects a record of business mileage made at the time to back up your claim. Good practice is a log of each business journey with the date, where you went, why and the miles. A mileage app or your job diary can do the same job. Source

Your business miles and vehicle costs are part of the expenses in your quarterly updates, so they need recording through the year, not added up in January. Under the flat rate, the claim is your miles times the rate. Source

Yes, the flat rate is the same for electric, hybrid, petrol and diesel: 55p then 25p. On actual costs you claim the business share of charging, and a new zero-emission car bought by 5 April 2027 can get a 100% first-year allowance. Source

A van bought for the business can usually go into the Annual Investment Allowance, so the business share of the whole price is deducted in the year you buy it. That is why actual costs often win in the first year of a new van, though you are then on actual costs for as long as you keep it. Source

Cars cannot use the Annual Investment Allowance. A new zero-emission car can get a 100% first-year allowance. Other cars get writing-down allowances each year: 14% for cars up to 50g/km of CO2 (12% from April 2027) and 6% for cars over that. Second-hand electric cars get the 14% rate, not the 100% allowance. Source

On actual costs, only the business share, worked out from business miles as a share of total miles. On the flat rate, you simply claim the business miles at the rate, and personal miles are left out. Source

No. Parking and tolls for business journeys are allowable, but fines and penalties for breaking the law are not. Source

No. If you use the £1,000 trading allowance instead of claiming expenses, you cannot also claim mileage or other costs against that income. Source

No. It is an estimate from the published rates, to help you choose. An accountant can check your figures, especially in the year you buy a vehicle, and set up your records for Making Tax Digital. Source