How much can I claim per mile?
Multiply your business miles by the rate. The 55p rate covers the first 10,000 business miles in the tax year; every mile after that is 25p.
Example. You drive 14,000 business miles in your van in 2026/27.
- First 10,000 miles at 55p: £5,500
- Next 4,000 miles at 25p: £1,000
You claim £6,500, plus any parking on top.
The flat rate stands in for every running cost of the vehicle: fuel, insurance, servicing, repairs, tyres, road tax, breakdown cover and the van itself wearing out. Parking is separate, so you claim it on top, along with other travel costs such as train fares. Fines never count.
A lot of pages still quote 45p. That was the rate up to 6 April 2026. If you use software for your records, check it has been updated.
Which journeys count as business miles?
- Driving to customers' homes and to temporary sites.
- Trips to the merchant or wholesaler for materials.
- Pricing visits, even when you don't win the job.
- Going between jobs in the same day.
Driving from home to a permanent workplace doesn't count. If you rent a unit and go there every morning, the drive to the unit is commuting. The drive on from the unit to a customer is business.
If you also use the van privately, only the business miles go in. That's why the mileage log matters.
Flat rate or actual costs: which is better for a van?
You choose for each vehicle. The choice sticks: once you claim the flat rate for a van, you use it for as long as you keep that van.
| Flat rate per mile | Actual costs | |
|---|---|---|
| What you claim | Business miles times the rate | The business share of fuel, insurance, servicing, repairs and tax, plus the van's purchase price |
| Records | A mileage log | Every receipt, plus a mileage log to work out the business share |
| Tends to suit | Older or cheaper vans, lots of miles, private use as well | A van you've just bought, heavy running costs, almost all business use |
| Can you change later? | Not for this vehicle | Not once you've claimed the purchase price |
Claiming the van itself
Most sole traders use the cash basis, which has been the standard method since April 2024. Under the cash basis, a van you buy for the business is claimed as an ordinary expense in the year you pay for it, less any private share. Cars are different: you claim a car through capital allowances, spread over several years.
If you use traditional accounting instead, a van is claimed through capital allowances. The annual investment allowance lets you deduct the full cost in the year you buy it, up to £1,000,000.
If you've claimed the cost of a van and later sell it, the sale price usually has to go back into your business income for that year.
A rough way to compare
Add up a year of real running costs for the van and the business share of what you paid for it. Compare that with your business miles times the flat rate. The bigger number saves more tax, but remember the choice lasts as long as the van does, so think about the years after the purchase too.
What records do I need?
For the flat rate, keep a mileage log: the date, where you went, why, and the miles. A notes app or a spreadsheet is fine; many job management and accounting apps record trips for you. For actual costs, keep every receipt too.
If you're in Making Tax Digital, your vehicle costs go into your quarterly updates along with everything else. For the other costs you can claim, see expenses tradespeople can claim.
Common questions
Is it 55p for the whole of 2026/27?
Yes. The new rate applies to business miles driven from 6 April 2026, which is the start of the 2026/27 tax year. Miles driven before then are claimed at 45p.
Can I switch from the flat rate to actual costs next year?
No, not for the same vehicle. Once you use the flat rate for a car or van, you keep using it for as long as that vehicle is in the business. You can make a fresh choice when you change vehicle.
Does the 10,000 miles reset each year?
Yes. The higher rate covers the first 10,000 business miles in each tax year, per vehicle.
Can I claim driving from home to a customer's house?
Yes. Travel to customers and to temporary sites is business travel. What you can't claim is the commute to a permanent workplace, such as your own workshop or unit if you go there every day.
More guides
- Expenses tradespeople can claim
- How to register as self-employed in the UK (sole trader)
- CIS for subcontractors: 20% or 30%, registering, and gross payment status
- Self-employed tax rates 2026/27: what you'll pay on your profit
Sources
- Simplified expenses if you're self-employed: vehicles, GOV.UK. Checked 28 Oct 2026
- Expenses if you're self-employed: car, van and travel expenses, GOV.UK. Checked 28 Oct 2026
- Cash basis: how to record income and expenses, GOV.UK. Checked 28 Oct 2026
- Capital allowances: annual investment allowance, GOV.UK. Checked 28 Oct 2026
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