From the 2026-27 tax year, the flat rate self-employed trades can claim for driving a car or van for work is 55p a mile for the first 10,000 business miles, up from 45p. Above 10,000 miles it's still 25p. It was announced in May 2026 and backdated to 6 April 2026, so every business mile you've driven since then counts at 55p, including any you've already logged at 45p.

The rates

  • Cars and vans, the first 10,000 business miles in the tax year: 55p a mile from 6 April 2026, 45p before that.
  • Cars and vans, every business mile after 10,000: 25p, the same as before.
  • Motorbikes: 24p a mile, the same as before.

HMRC's own example: 11,000 business miles in 2026-27 is 10,000 at 55p (£5,500) plus 1,000 at 25p (£250), so you can claim £5,750. At the old rate the same miles came to £4,750, £1,000 less.

What it's worth to you

Say you drive 8,000 business miles a year. You can now claim £4,400 instead of £3,600. That's £800 more in expenses, so £800 less profit to pay tax and National Insurance on.

Who can use the flat rate

  • Sole traders, and partnerships with no company as a partner. HMRC calls it simplified expenses.
  • Not limited companies. If you work through your own company and drive your own car or van for work, the company can pay you mileage instead, at up to HMRC's approved rate, which is also 55p a mile for the first 10,000 miles from 2026-27. Ask your accountant how to set it up.

The rules

  • The flat rate is instead of the real costs of buying and running the vehicle: fuel, insurance, repairs and servicing. You can't claim both for the same vehicle.
  • You can still claim parking, and other travel like train fares, on top. Not fines.
  • You can't use the flat rate for a vehicle you've already claimed capital allowances on.
  • Once you use the flat rate for a vehicle, you have to keep using it for as long as you use that vehicle for work.

What counts as a business mile

Journeys you make for the work. For most trades, that's driving to customers' jobs, out to price up work, and to pick up materials. Personal trips don't count, and nor does travel between home and a regular place of work. If you're not sure where the line is for you, ask your accountant.

Already logged some miles at 45p?

If your app or spreadsheet worked out April and May at 45p, check it. For the 2026-27 tax year the rate is 55p from 6 April, not from the day it was announced. Before your figures go to HMRC, make sure the whole tax year is at 55p.

Keep a record

Note each business trip as you go: the date, where you went and the miles. That's what the claim is worked out from, and it's what you'd show if HMRC asked how you got the figure.

Let WorkPaid do the sum

WorkPaid's mileage log, under Expenses, works it out for you. Add each trip with the date, the miles and a note, and it applies 55p a mile until you pass 10,000 business miles in the tax year, then 25p. The total goes into your profit figure and the profit and loss export for your accountant. It counts the 10,000 across all your trips, so if you use more than one vehicle for work, check with your accountant how they'd like it split.

HMRC's pages: Simplified expenses: vehicles and Travel: mileage and fuel rates and allowances.