Mileage allowance for the self-employed
If you drive or ride for work, the flat mileage rate is usually the simplest — and often the biggest — tax saving you have. From April 2026 it went up for the first time since 2011.
The short answer: for the 2026–27 tax year you can claim 55p a mile for the first 10,000 business miles in a car or van (it was 45p in 2025–26), then 25p a mile. Motorcycles are 24p a mile. You claim it instead of your actual running costs.
The rates
| Vehicle | 2025–26 (to 5 April 2026) | 2026–27 (from 6 April 2026) |
|---|---|---|
| Car or van, first 10,000 business miles | 45p | 55p |
| Car or van, each mile after 10,000 | 25p | 25p |
| Motorcycle, every business mile | 24p | 24p |
The 10,000 miles are business miles in the tax year (6 April to 5 April).
Worked examples
A car, 14,000 business miles in 2026–27
10,000 × 55p = £5,500, plus 4,000 × 25p = £1,000. You claim £6,500. For a basic-rate taxpayer that's about £1,690 less tax and National Insurance (20% income tax plus 6% Class 4).
A motorbike, 8,000 business miles
8,000 × 24p = £1,920.
The same 14,000 miles in 2025–26
10,000 × 45p + 4,000 × 25p = £5,500 — so the new rate is worth £1,000 more on these miles.
The rules
- It replaces your running costs. The rate covers fuel, insurance, repairs, servicing, road tax and wear — you can't claim those as well. Parking while working can be claimed on top.
- Once you choose it, you keep it. If you use the flat rate for a vehicle, you must carry on using it for as long as you use that vehicle for your business.
- Not if you've claimed capital allowances on the vehicle, or included it as an expense when working out your profits.
- Business miles only. Miles while you're working count; personal trips don't.
- Bicycles aren't covered by the flat rates for the self-employed — cyclists claim their actual costs instead (see what delivery riders can claim).
Flat rate or actual costs?
The flat rate usually wins for a cheap-to-run, fuel-efficient car doing lots of miles. Actual costs can win for an expensive vehicle with high insurance and repair bills. Before you commit a vehicle to the flat rate, compare one year both ways: add up the actual costs for the business share and set them against business miles × the rate.
Keep a mileage log
HMRC can ask how you worked out your miles. For each working day, note the date, start and end points (or the app shifts you worked) and the miles. Platform trip histories help, but a phone GPS log of your whole shift — including riding between orders — is usually more complete.
Log miles without thinking about it
Fisely records your trips, applies the right rate for each tax year, and shows what they save you.
Create a free accountSources
- Simplified expenses: vehicles (GOV.UK)
- Travel — mileage and fuel rates and allowances (GOV.UK)
- Self-employed travel expenses (GOV.UK)
This guide is general information, not tax advice. Rules can change — check GOV.UK or ask an accountant about your own situation.