HMRC Mileage Rate 2026/27 — What Self-Employed People Can Claim

What Is the HMRC Mileage Rate for 2026/27?

If you are self-employed, a sole trader, or a freelancer who uses your own vehicle for business journeys, you can claim the HMRC Approved Mileage Allowance Payment (AMAP) as a tax-deductible expense.

For the 2026/27 tax year, the rates are:

These rates have not changed since 2011, and many accountants believe they no longer reflect the true cost of running a vehicle — but they remain the HMRC approved figures.

Who Can Claim Mileage?

You can claim mileage if:

• You are self-employed, a sole trader, or a freelancer
• You use your own vehicle (not a company car) for business journeys
• The journey is wholly and exclusively for business purposes

You cannot claim mileage for commuting from your home to a regular fixed workplace. However, if you work from home, journeys to visit clients are claimable.

What Counts as a Business Journey?

Business journeys include:

• Visiting a client or customer
• Travelling to a temporary workplace
• Attending a business meeting or conference
• Collecting business supplies
• Going to the bank for business purposes

How to Claim Mileage on Your Self Assessment

To claim mileage on your Self Assessment tax return, you simply multiply your business miles by the HMRC rate.

Example:

• 6,000 business miles in the year
• 6,000 × 45p = £2,700 mileage claim
• This £2,700 is deducted from your taxable profit

Do You Need to Keep Records?

Yes. HMRC can ask you to prove your mileage claims at any time. You should keep a mileage log with:

• Date of each journey
• Start and end location
• Purpose of the journey
• Miles travelled

Pivitax tracks all of this automatically. Every time you log a journey, it records the date, route, miles, and calculates your claimable amount. Your mileage is included in your tax report at the click of a button.

Can You Claim Actual Vehicle Costs Instead?

Yes — instead of using the mileage rate, sole traders can claim actual vehicle running costs (fuel, insurance, servicing, MOT, road tax) on a business use percentage basis. However, once you choose a method for a vehicle, you must stick with it. Most self-employed people find the mileage rate simpler.

Summary

• 45p per mile for the first 10,000 business miles
• 25p per mile after that
• Keep a mileage log with dates, routes, and purpose
• Claim on your Self Assessment tax return under allowable expenses