Claiming mileage when you are self-employed
If you are self-employed you can either claim a flat rate per business mile (simplified expenses, at 55p a mile for the first 10,000 from April 2026) or claim the actual costs of running the vehicle. For most people with an ordinary car, the flat rate is simpler and often better.
Updated 14 October 2026
Simplified expenses
You multiply your business miles by the approved rate: 55p for the first 10,000 business miles in the tax year and 25p after, for cars and vans (from 6 April 2026). That figure covers fuel, insurance, servicing, repairs, tax and depreciation. You cannot claim those separately as well.
Parking and tolls on business journeys can still be claimed on top.
Actual costs
Instead, you can claim the business proportion of what the vehicle actually costs: fuel, insurance, repairs, servicing, tax, and capital allowances on the car itself. If you drive 40 per cent business miles, you claim 40 per cent of the costs.
This can come out higher for an expensive car with high running costs, but it needs receipts for everything and a reliable way to show the business proportion.
The switching rule
Once you have used simplified expenses for a vehicle, you must keep using them for as long as you use that vehicle in the business. Choose carefully when you start using a new car for work.
Either way, you need the miles
Both methods depend on knowing your business miles. Odomint records every drive automatically, lets you tag each as business or personal, and totals the claim by tax year at the right rate, so the number on your tax return is backed by a journey-by-journey record.
A quick comparison
Suppose you drive 8,000 business miles in 2026/27 in a mid-sized petrol car. Simplified expenses give 8,000 × 55p = £4,400 to deduct. If your total running costs for the year (fuel, insurance, servicing, tax and depreciation) come to £5,000 and 40 per cent of your driving is business, actual costs give £2,000. The flat rate wins comfortably.
Actual costs tend to win only with an expensive vehicle, high running costs and a high business percentage. For the typical sole trader with an ordinary car, the flat rate is both simpler and larger, which is why most people use it.
Common questions
What is the self-employed mileage rate for 2026/27?
55p per mile for the first 10,000 business miles in the tax year and 25p per mile after that, for cars and vans, under simplified expenses.
Can I claim fuel as well as 55p a mile?
No. The flat rate covers fuel and all other running costs. Parking and tolls can be claimed separately.
Can I switch from simplified expenses to actual costs?
Not for the same vehicle. Once you use simplified expenses for a vehicle, you must continue to do so while it is used in the business.
Check any car before you buy it
MOT history, every advisory and the full mileage record are free for any UK registration. An Odomint Check adds outstanding finance, insurance write-offs, stolen markers and salvage history, with a £10,000 data guarantee.