HMRC mileage calculator - 2026/27 rates.

The HMRC approved mileage rate for cars and vans in 2026/27 is 55p per mile for the first 10,000 business miles in the tax year, and 25p per mile for any miles above 10,000. This was increased from 45p in the 2026/27 tax year - the first change since 2011.

Yes. Self-employed sole traders can claim the HMRC approved mileage rate of 55p per mile (first 10,000 miles) as a business expense using the simplified expenses method. You claim it on your Self Assessment return in the motor expenses field. You must keep a mileage log showing the date, destination, business purpose, and miles for each journey.

Once you cross 10,000 business miles in a tax year, the rate drops to 25p per mile for every mile above the threshold. The calculator handles this automatically - if you enter 12,000 miles, it applies 55p to the first 10,000 and 25p to the remaining 2,000. The threshold resets to zero on 6 April each year.

HMRC allows an additional 5p per mile for each passenger travelling on business in your vehicle. If you drive a subcontractor or employee to a job site, you can add 5p per mile per person on top of your standard mileage claim. The passenger must be travelling for business - you cannot claim the add-on for personal passengers.

No. If you use the HMRC approved mileage rate (the simplified expenses method), the mileage rate covers all vehicle running costs including fuel, insurance, servicing, and repairs. You do not need to keep individual fuel receipts. You do need to keep a mileage log showing details of each business journey.

HMRC requires a mileage log that records each business journey at the time it happens. The log must include: the date, the start and end addresses, the business purpose, the miles driven, and a running total for the year. HMRC can request records up to 6 years after the tax year. A mileage log kept on paper, in a spreadsheet, or in an app all satisfy the requirement.

Yes. The HMRC approved mileage rate of 55p/mile applies to electric vehicles as well as petrol and diesel cars and vans. There is no separate rate for EVs under the self-employed simplified expenses rules. The same rates apply regardless of fuel type.