FREE SOLE TRADER MILEAGE TOOL
Use this free self-employed mileage calculator to work out simplified vehicle expenses using the HMRC rates for 2025/26 or 2026/27.
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Business mileage allowance calculator
Your mileage stays in your browser and is not sent to Real Key Accountancy.
Include only qualifying business journeys. Exclude private travel and ordinary travel between home and a permanent workplace.
Business mileage rates for sole traders
To work out mileage expenses, select the relevant tax year and vehicle type, enter your qualifying business miles, then choose Calculate mileage expense. The result applies the first and higher mileage bands automatically.
| Vehicle | 2025/26 | 2026/27 |
|---|---|---|
| Car or goods vehicle: first 10,000 business miles | 45p per mile | 55p per mile |
| Car or goods vehicle: above 10,000 business miles | 25p per mile | 25p per mile |
| Motorcycle | 24p per mile | 24p per mile |
HMRC increased the first 10,000-mile car and goods-vehicle rate to 55p for 2026/27, with retrospective effect from 6 April 2026. The calculator keeps the earlier 45p rate available for 2025/26 records.
Who can use simplified mileage expenses?
Sole traders and partnerships with no company partners may use simplified vehicle expenses. Limited companies cannot use the self-employed simplified-expense rules. Employees and directors follow different mileage reimbursement and tax-relief rules.
You cannot use simplified mileage for a vehicle if you have already claimed capital allowances for it or included its purchase as an expense. Once you use the flat-rate method for a vehicle, you must normally keep using it for as long as that vehicle remains in the business.
What counts as business mileage?
- Travel to customers, temporary workplaces or suppliers
- Journeys to collect stock or business equipment
- Travel between business appointments
- Business banking, training or professional meetings where allowable
Private travel does not count. Ordinary journeys from home to a permanent workplace are generally commuting and cannot be claimed. Taxi and delivery drivers should keep reliable trip or mileage records and separate business use from any private journeys.
What does the mileage rate cover?
- Fuel
- Insurance
- Vehicle tax and MOT
- Repairs and servicing
- Depreciation and other general running costs
You cannot claim these actual vehicle costs again when using simplified mileage. However, eligible parking fees, congestion charges, tolls and public transport costs may be claimed separately where the normal business-expense rules allow them. Fines and penalties are not allowable.
Mileage calculation example
A sole trader drives 12,000 business miles in a car during 2026/27. The first 10,000 miles at 55p produce £5,500. The remaining 2,000 miles at 25p produce £500. The total simplified mileage expense is £6,000.
Mileage records to keep
- Date of each journey
- Starting point and destination
- Business purpose
- Business miles travelled
- Vehicle used
- Supporting appointment, job or delivery records
Consistent records support your expense claim and make digital bookkeeping easier. Avoid estimating an annual figure without journey evidence.
How Real Key Accountancy can help
- Set up mileage and expense records
- Reconcile delivery, taxi or trade income
- Organise receipts and business bank transactions
- Prepare non-statutory sole trader accounts
- Support Making Tax Digital record keeping
Explore our taxi and delivery driver accountancy support, tradespeople accountancy services, or use the Self-Employed Tax Calculator. You can also contact Real Key Accountancy.
Official mileage guidance
Rates were checked in August 2026 against HMRC’s simplified vehicle expense guidance and self-employed travel expense guidance. Always review current rules before making a claim.
Frequently asked questions
Can taxi drivers use simplified mileage?
Some eligible self-employed private-hire drivers may use simplified mileage if they meet the conditions and have not already used an incompatible method for that vehicle. However, HMRC excludes vehicles designed for commercial use, including black cabs and hackney carriages, from simplified vehicle expenses.
Can I claim fuel as well as mileage?
No. Fuel and general vehicle running costs are already included in the flat mileage rate.
Can I claim private miles?
No. Only qualifying business miles should be included.