What it's worth
Someone who drives 10,000 business miles in the 2026/27 tax year can now claim £5,500, against £4,500 at the old rate. That's £1,000 more in expenses taken off their profit before tax.
The flat rate covers all the running costs of the vehicle, so you can't also claim fuel, insurance or servicing for it. Parking and other travel, such as train fares, go on top.
What to check
- Miles driven before 6 April 2026 are still claimed at 45p.
- If your software or spreadsheet works out mileage for you, make sure it's using 55p for 2026/27.
- Once you use the flat rate for a vehicle, you keep using it for as long as that vehicle is in the business.
Our mileage guide covers which journeys count and when your van's actual costs work out better.
The full guide
- Self-employed mileage allowance 2026/27: 55p a mile, or your van's real costs
- Expenses tradespeople can claim
Sources
- Simplified expenses if you're self-employed: vehicles, GOV.UK. Checked 29 Oct 2026