Self-Employed Mileage Allowance (UK): The 45p Guide for 2026

Short answer: If you are self-employed in the UK, you can claim a flat mileage allowance for business driving using HMRC’s simplified expenses. The long-standing rate was 45p per mile for the first 10,000 business miles in a tax year, then 25p per mile above that. From 6 April 2026 (the 2026/27 tax year), HMRC increased the first-10,000-mile rate to 55p per mile, while the over-10,000 rate stays at 25p. You claim the allowance on your Self Assessment tax return and must keep a mileage log to back it up.

Many people still search for the “45p mileage rate”, so it is worth being precise. The 45p figure was correct up to and including the 2025/26 tax year. HMRC announced an increase on 21 May 2026, and the new rate of 55p per mile applies from 6 April 2026. If you are completing a return for an earlier year, you use the rate that applied in that year.

What is the self-employed mileage allowance in the UK?

The self-employed mileage allowance is a flat, per-mile figure you can deduct from your business income instead of working out the actual running costs of your vehicle. It is part of what HMRC calls simplified expenses. Instead of adding up fuel, insurance, servicing, repairs, road tax and depreciation, you multiply your business miles by a fixed rate.

Only sole traders and business partnerships can use simplified mileage rates. Limited companies and partnerships with a corporate partner cannot. The allowance is reported through Self Assessment.

What is the mileage rate for the self-employed in 2026?

The table below shows the HMRC simplified expenses mileage rates. Always confirm the current figure on GOV.UK before you file.

Vehicle	Business miles in the tax year	Rate up to and including 2025/26	Rate from 6 April 2026 (2026/27)
Cars and goods vehicles	First 10,000 miles	45p per mile	55p per mile
Cars and goods vehicles	Over 10,000 miles	25p per mile	25p per mile
Motorcycles	All business miles	24p per mile	24p per mile (verify on GOV.UK)

Source: GOV.UK, “Simplified expenses if you’re self-employed: Vehicles” and HMRC, “Increase to Approved Mileage Allowance Payments (AMAPs) and self-employed simplified mileage rates”.

The 10,000-mile threshold resets each tax year (6 April to 5 April). The same increase applies to Approved Mileage Allowance Payments (AMAPs), which employers use to reimburse employees, but this guide is about the self-employed.

How do I calculate my mileage allowance? (Worked example)

Suppose you drive 12,000 business miles in a car during the 2026/27 tax year.

• First 10,000 miles × 55p = £5,500
• Next 2,000 miles × 25p = £500
• Total mileage allowance = £6,000

You deduct that £6,000 from your business income as an expense. For the 2025/26 tax year, the same 12,000 miles would have been (10,000 × 45p) + (2,000 × 25p) = £4,500 + £500 = £5,000.

What counts as a business mile?

A business mile is a journey made wholly and exclusively for your business. Commuting from home to a regular, permanent place of work does not count, and neither do private trips.

Journeys that usually count:

• Driving to a client’s premises or a job site
• Travelling between two workplaces
• Visiting a supplier, wholesaler or the bank for business
• Driving to a temporary work location

Journeys that usually do not count:

• Your normal commute
• Personal errands and social trips
• Any private portion of a mixed journey

Simplified expenses vs actual costs: which should I choose?

You have two ways to claim vehicle costs, and you should pick the one that gives the better result for your situation.

Feature	Simplified expenses (flat rate)	Actual costs
What you claim	Fixed pence per mile	Real fuel, insurance, servicing, repairs, tax, plus capital allowances
Record keeping	Mileage log	Full receipts and running-cost records
Best for	Lower-cost or fuel-efficient vehicles, simpler admin	High-cost vehicles or heavy business use
Restriction	Once used for a vehicle, you must keep using it for that vehicle; you can switch only when you replace the vehicle	You cannot also claim the flat mileage rate for the same vehicle

Use the free “Check if simplified expenses could save your business money” tool on GOV.UK to compare. Once you use the flat rate for a particular vehicle, HMRC expects you to keep using it for that vehicle until you change vehicles.

What records do I need to keep for mileage?

HMRC can ask you to prove your mileage. A defensible log records, for each business journey:

• Date of the trip
• Start and end locations (or route)
• Business purpose (client name, reason)
• Miles driven
• A running total of business miles for the tax year

Self-employed people must keep business records for at least 5 years after the 31 January submission deadline of the relevant tax year, per GOV.UK. Reconstructing a year of trips from memory the night before you file is exactly what HMRC’s checks are designed to catch, so log trips as they happen.

Can an app help me log business trips?

Yes. Keeping a contemporaneous log is far easier with a tool than with a paper diary. Keel: Invoice Maker & Receipts by Ilura Technology lets you log business trips, create invoices and capture receipts, all stored encrypted on your iPhone with no bank connection, no cloud and no account.

Be aware of one honest limitation for UK users: Keel is currently US-centric, so its built-in mileage rate is the IRS rate, not the HMRC 55p/45p rate. For a UK sole trader, Keel is best used as a private trip logger and record-keeper (date, route, purpose, miles) plus private invoicing and receipt capture, and you or your accountant apply the correct HMRC rate at tax time. Keel does not auto-calculate the UK allowance.

Frequently asked questions

Is the UK self-employed mileage rate 45p or 55p in 2026? It depends on the tax year. It was 45p per mile for the first 10,000 miles up to and including 2025/26. From 6 April 2026 (the 2026/27 tax year), HMRC increased it to 55p per mile. The over-10,000-mile rate remains 25p.

Can I claim mileage and fuel separately? No. The flat mileage rate already includes fuel and all other running costs. If you claim the simplified mileage rate for a vehicle, you cannot separately claim fuel or capital allowances for that vehicle.

Do I need receipts for mileage? You need a mileage log, not fuel receipts, when you use simplified expenses. The log must show the date, route, purpose and miles for each business journey.

Can I claim for my commute? Generally no. Travel from home to a regular, permanent workplace is treated as private commuting and is not a business mile.

Where can I check the current rate? Search “Simplified expenses if you’re self-employed” on GOV.UK. Rates can change, so confirm the figure before you file.

The bottom line

The mileage allowance is one of the simplest ways for a UK sole trader to claim vehicle costs: multiply business miles by the HMRC rate (55p per mile for the first 10,000 miles from 6 April 2026, previously 45p, then 25p above 10,000). The rules reward good habits, so log every business trip with its date, route and purpose. A private, on-device app like Keel can help you keep that log and your invoices and receipts in one place, on your iPhone. Confirm the current rate on GOV.UK and, for anything involved, ask an accountant.

Try Keel on the App Store: https://apps.apple.com/us/app/keel-invoice-maker-receipts/id6786659713 (Free: 3 invoices/month plus unlimited receipts; Pro is roughly the £ equivalent of $7.99/month or $59.99/year, see the App Store for local pricing).

This article is general information, not tax advice. Consult a qualified accountant or tax adviser.