As a sole trader, every business mile you drive is a legitimate tax deduction — but only if you claim it correctly. The HMRC sole trader mileage claim rules are straightforward once you understand them, and getting them right can save you a significant amount at tax time.
This guide walks you through what you can claim, what rates apply, and exactly how to record and report your mileage for 2026/27.
What Is a Sole Trader Mileage Claim?
When you use your own vehicle for business purposes as a sole trader, you can deduct the cost from your taxable profits. This reduces the income on which you pay income tax and Class 4 National Insurance Contributions.
The simplest way to do this is using HMRC’s simplified expenses (mileage) method. Instead of calculating your actual running costs, you multiply your business miles by the approved rate.
For 2026/27, the rates are:
- Cars and vans: 45p per mile for the first 10,000 miles, 25p per mile after that
- Motorcycles: 24p per mile
- Bicycles: 20p per mile
Simplified Expenses vs Actual Costs
HMRC gives sole traders a choice between two methods for claiming vehicle expenses.
Simplified Expenses (Mileage Method)
You multiply your business miles by the approved rate. That’s your deduction. Done.
The main advantages are simplicity and consistency. You do not need to track fuel receipts, service bills, or insurance costs. You simply need an accurate record of your business miles.
Example: You drive 9,000 business miles in 2026/27 in your own car.
- 9,000 × 45p = £4,050 deduction
Actual Costs Method
You work out the total cost of running your vehicle for the year (fuel, insurance, road tax, MOT, repairs, finance payments, depreciation) and claim the percentage attributable to business use.
Example: Your car costs £6,000 per year to run. You use it 60% for business. Your deduction is £3,600.
This method can produce a larger deduction if you have a high-cost vehicle and significant business use. But it requires much more detailed record-keeping.
Which Method Should You Choose?
You must choose your method when you first start using the vehicle for business. You cannot switch between the two methods for the same vehicle — if you start with simplified expenses, you must stick with it for that vehicle.
The general rule of thumb: simplified expenses is usually better for lower-cost vehicles and lower annual mileage. Actual costs tends to be better when your vehicle is expensive, has high running costs, and you use it predominantly for business.
If you are unsure, calculate both and pick the one that gives you a larger deduction. Just remember, whichever you choose on day one, that’s the method you use for the life of that vehicle.
How to Track Your Business Miles
Regardless of which method you use, you need accurate mileage records if using the simplified method — and business-vs-personal usage records if using actual costs.
For every business journey, HMRC expects you to record:
- The date
- The start and end point
- The business purpose of the journey
- The number of miles driven
Commuting between home and a fixed regular place of work does not count as business mileage. If you work from home and travel to client sites, however, those journeys do qualify.
Many sole traders undercount their mileage because they only log obvious trips (client meetings) and forget others (trips to a trade supplier, post office for business parcels, or driving to a course). Every qualifying mile counts.
Tripbook makes this effortless — it automatically detects journeys via GPS and lets you quickly tag each one as business or personal. You will never miss a qualifying mile again.
Download Tripbook and start building your mileage record from day one.
The 10,000-Mile Threshold Explained
The 45p rate applies to the first 10,000 business miles you drive in a tax year (6 April to 5 April). After that, the rate drops to 25p.
This threshold resets every tax year. If you drove 12,000 business miles in 2025/26, you start fresh at 45p from 6 April 2026.
Calculation example for 12,000 miles:
- First 10,000 miles: 10,000 × 45p = £4,500
- Remaining 2,000 miles: 2,000 × 25p = £500
- Total: £5,000
Claiming Mileage on Your Tax Return
Your mileage claim goes into the Self Employment section of your Self Assessment return under Vehicle and travel costs (within Allowable business expenses).
Enter the pound amount — your miles multiplied by the applicable rate — not the number of miles themselves.
You do not attach your mileage log to your return. However, you must keep the records for six years in case HMRC requests them. HMRC can open an enquiry into any return within that period.
Multiple Vehicles
If you use more than one vehicle for business, you track mileage separately for each one. The 10,000-mile threshold is per vehicle, not across all vehicles combined.
You can also use different methods for different vehicles. You might use simplified expenses for your car and actual costs for a van, for example.
Travel That Qualifies (and Travel That Does Not)
Qualifying business journeys:
- Visiting clients or customers
- Travelling to temporary workplaces
- Going to the bank, post office, or suppliers for business purposes
- Attending networking events or trade shows
- Travelling between two different business locations
Non-qualifying travel:
- Your daily commute to a fixed, regular place of work
- Personal errands (even if carried out on the same day as business travel)
- Travel for non-business purposes
The key rule is that the journey must have a genuine business purpose. A mixed journey — say, stopping at a client on the way to a personal appointment — can be partially claimed, but only the business portion.
Key Deadlines
For the 2026/27 tax year (6 April 2026 to 5 April 2027):
- Paper Self Assessment deadline: 31 October 2027
- Online Self Assessment deadline: 31 January 2028
- MTD for Income Tax kicks in from April 2026 if your income exceeds £50,000, requiring quarterly digital submissions
Make sure your mileage records are complete and accurate before you sit down to file your return.
Summary
Claiming mileage as a sole trader is a legitimate and often underutilised deduction. The simplified expenses method — 45p per mile for the first 10,000 miles, 25p thereafter — is the easiest approach for most sole traders.
For the full picture on HMRC rates and rules, see our guide to the HMRC mileage rate for 2026/27. And for step-by-step guidance on entering your claim at tax time, see how to claim mileage on your Self Assessment return.
