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Mileage allowance calculator

Work out what you can claim for business miles using HMRC's simplified expenses flat rates, and compare it with your actual van or car running costs.

The flat rates

HMRC's simplified expenses let sole traders claim a flat rate per business mile instead of the actual costs of buying and running a vehicle. For cars and goods vehicles such as vans, the rate for the 2026 to 2027 tax year is 55p a mile for the first 10,000 miles (45p before 6 April 2026) and 25p a mile after that. Motorcycles are 24p a mile (GOV.UK, checked 15 October 2026). GOV.UK's example: 11,000 business miles in 2026 to 2027 is £5,500 plus £250, so £5,750.

Who can use it, and the catches

Simplified expenses are for sole traders and partnerships with no companies as partners, not limited companies. You can't use the flat rate for a vehicle you've already claimed capital allowances on, or included as an expense. Once you use flat rates for a vehicle, you must keep using them for as long as you use it for the business. Parking and other travel, such as train journeys, can be claimed on top (GOV.UK).

The comparison above uses running costs only. If you bought the van, capital allowances may make the actual-cost method worth more, so check with an accountant before you choose; the choice sticks for that vehicle. Lease, buy or flat rate? Read van costs for sole traders. For tax on the profit itself, see how CIS tax is calculated and the day-rate calculator.

Questions

What is the HMRC mileage rate for 2026 to 2027?

For sole traders using simplified expenses, 55p a mile for the first 10,000 business miles in a car or van, then 25p. Motorcycles are 24p. Before 6 April 2026 the first-10,000 rate was 45p. Checked on GOV.UK on 15 October 2026.

Can a limited company director use these rates?

Not as simplified expenses: GOV.UK says limited companies can't use them. Mileage paid to employees and directors follows separate rules.

Do vans get the same rate as cars?

Yes. GOV.UK lists cars and goods vehicles together at the same rates.

Can I switch back to actual costs later?

Not for the same vehicle. Once you use flat rates for a vehicle, you must continue as long as you use it for the business.