How to Claim Mileage as Self-Employed in the UK (2026 Guide)

If you're self-employed and drive to client sites, supplier visits, or business meetings, you can claim mileage expenses to reduce your tax bill. This guide explains HMRC's simplified mileage rates, what journeys qualify, how to keep records that satisfy HMRC, and how to calculate your deduction for Self Assessment.

HMRC Simplified Mileage Rates 2026

The simplest way to claim mileage expenses is to use HMRC's approved mileage rates, also called "simplified expenses". You multiply your business miles by the rate for your vehicle type:

These rates are designed to cover all your vehicle running costs: fuel, insurance, MOT, servicing, repairs, road tax, and depreciation. You cannot claim actual fuel receipts on top of the simplified rate — it's one or the other.

Most sole traders use the simplified rate because it's easier to track (just record miles, not every fuel receipt) and often results in a larger deduction.

What Journeys Count as Business Mileage?

HMRC only allows you to claim mileage for journeys that are "wholly and exclusively" for business purposes. Here's what counts and what doesn't:

✅ Business Mileage (You CAN Claim)

• Client site visits: Travelling from your home or office to meet a client, deliver work, or perform a service
• Supplier visits: Picking up materials, visiting wholesalers, or meeting with suppliers
• Business meetings: Networking events, industry conferences, accountant appointments, bank visits for business matters
• Multi-site days: If you visit multiple work locations in one day (e.g., plumber visiting 3 different jobs), all miles between sites count
• Business errands: Post office to send client invoices, stationery shop for business supplies

❌ Personal/Commuting Mileage (You CANNOT Claim)

• Ordinary commuting: Daily travel from home to a fixed workplace (e.g., if you work at the same office every day)
• Personal errands: Supermarket, gym, dropping kids at school, even if you do them on the way to a client
• Round trips that include personal stops: If you visit a client then stop at Tesco on the way home, you can only claim the business portion (home to client and back)

Key rule: If your home is your main place of business (you work from a home office), journeys from home to client sites count as business mileage. If you have a separate office or workshop that you travel to daily, that journey is ordinary commuting and doesn't count.

How to Keep a Mileage Log for HMRC

HMRC does not require fuel receipts when you use the simplified mileage rate, but you must keep a detailed record of your business journeys. If HMRC opens an enquiry, they will ask to see this log.

What to Record for Each Journey

Mileage Tracking Tools

You can track mileage however you like, as long as the record is contemporaneous (recorded at the time, not months later). Options:

• Paper diary: Keep a small notebook in your glovebox and write down each journey
• Spreadsheet: Record journeys in Excel or Google Sheets weekly
• Mileage tracking app: Apps like MileIQ, Driversnote, or QuickBooks Self-Employed auto-track journeys using GPS (usually £5-10/month)
• Notion template: If you already use Tallied's Freelancer Business OS, you can track mileage alongside your income and expenses in one place

Tip for tradespeople: If you visit 3-5 client sites per day (common for plumbers, electricians, builders), record your car's odometer reading at the start and end of each day. At the end of the week, add up your daily business miles. This is much easier than logging every single journey.

How Much Can You Claim? Worked Examples

Example 1: Freelance Electrician (8,000 Miles)

Example 2: IT Contractor (15,000 Miles)

Example 3: Courier on a Motorcycle (12,000 Miles)

How to Claim Mileage on Your Self Assessment Tax Return

When you file your Self Assessment tax return, you claim mileage expenses under the "Use of home as an office and simplified expenses" section.

Step-by-Step Process

1. Add up your total business miles for the tax year (6 April to 5 April)
2. Multiply by the HMRC rate (45p for first 10,000 miles, 25p after that)
3. Log in to HMRC's Self Assessment online service
4. Go to the "Self-employment" section
5. Under "Expenses", select "Use of home as an office and simplified expenses"
6. Enter your total mileage deduction in the "Vehicle expenses using simplified expenses" box
7. Do NOT enter anything in the "Motor expenses" box — that's for actual costs (fuel, insurance, etc.), which you cannot claim if you're using simplified expenses

Your Self Assessment form will automatically reduce your profit by the mileage deduction, which lowers your Income Tax and National Insurance bill.

Simplified Expenses vs Actual Costs: Which to Use?

You have two options when claiming vehicle expenses:

Option 1: Simplified Expenses (Mileage Rate)

• Pro: Much easier to track (just record miles, not every receipt)
• Pro: Usually results in a larger deduction unless you drive a very expensive car
• Con: You cannot claim any actual vehicle costs on top (no fuel receipts, insurance, MOT, etc.)

Option 2: Actual Costs

• Pro: May result in a larger deduction if you drive a very expensive car or do very low mileage
• Con: You must keep every single receipt (fuel, insurance, MOT, servicing, repairs, road tax)
• Con: You must calculate the business vs personal split (e.g., if 60% of your miles are business, you can only claim 60% of each cost)
• Con: More complex and time-consuming

Recommendation: Unless you drive a very expensive car (e.g., £40k+ purchase price) or do very few business miles (under 3,000 per year), the simplified mileage rate is almost always better and much less hassle.

Common Mistakes to Avoid

1. Claiming Ordinary Commuting

If you have a fixed workplace (e.g., an office you go to every day), the journey from home to that office is ordinary commuting and cannot be claimed. Only journeys to temporary work sites, client premises, or supplier visits count.

2. Not Keeping a Mileage Log

Without a contemporaneous mileage log, HMRC can disallow your entire mileage claim during an enquiry. "I drove about 10,000 miles" is not enough — you need dates, journeys, and purposes.

3. Mixing Simplified Expenses with Actual Costs

You cannot claim 45p per mile AND fuel receipts. It's one or the other. If you use simplified expenses, do not enter anything in the "Motor expenses" box on your tax return.

4. Claiming Personal Journeys

If you stop at Tesco on the way home from a client site, you can only claim the business portion of the journey (home to client and back). The detour to Tesco is personal mileage.

5. Forgetting to Switch After 10,000 Miles

The rate drops from 45p to 25p after 10,000 miles in a tax year. If you drive 15,000 miles, your calculation is (10,000 × 45p) + (5,000 × 25p), not (15,000 × 45p).

How Tradespeople Should Track Mileage

If you're a plumber, electrician, builder, gardener, or mobile hairdresser who visits multiple client sites per day, mileage can be your single biggest expense deduction. Here's how to track it efficiently:

Daily Odometer Method (Easiest for Multi-Site Days)

1. At the start of your work day, write down your car's odometer reading
2. At the end of your work day, write down the new odometer reading
3. Calculate the difference = your daily business miles
4. Record the date and a summary purpose (e.g., "3 jobs: SW London area")
5. At the end of the week, add up your daily miles

This method works well if the vast majority of your driving is for business. If you make personal detours (supermarket, school run), you'll need to subtract those miles.

Job-by-Job Method (More Accurate)

1. Record each client visit separately: date, client name, postcode, miles
2. Use Google Maps to calculate the distance from home to the client site and back
3. If you visit multiple sites in one day, log the route: Home → Client A → Client B → Client C → Home

This method is more accurate and gives you a clear audit trail if HMRC asks questions, but it's more time-consuming.

Pro tip: If you already use a job management system or CRM, add a "Miles" field to each job. When you complete a job, record the mileage. This way, your mileage log is built into your workflow and doesn't require a separate spreadsheet.

Tools to Track Mileage and Expenses Together

Most self-employed people need to track more than just mileage — income, expenses, invoices, and tax deadlines all need to be recorded. Here's how to keep everything in one place:

• Spreadsheet: Create a tab for mileage, another for income, another for expenses. Works but requires manual entry.
• Accounting software: Tools like QuickBooks Self-Employed (£10/month) or FreeAgent (£14/month) have mileage tracking built in. Good if you want full accounting features.
• Notion template: Tallied's Freelancer Business OS includes a mileage tracker, expense logger, invoice manager, and Self Assessment summary in one Notion workspace. One-off payment (no monthly subscription), UK-specific categories, and everything links together automatically.

Choose whichever system you'll actually use consistently. The worst mileage tracking system is the one you abandon after two months.

Related Articles

• How to Do Your Own Bookkeeping as a UK Sole Trader
• What Expenses Can a Sole Trader Claim? The Complete HMRC Guide
• Self-Employed National Insurance Changes UK 2026
• CIS Tax Deductions for UK Contractors

Frequently Asked Questions