The 55p a mile rate is one of the best tax breaks self-employed people ignore. Here is what it covers, when it changed, and how to actually claim it.
20 April 2026 · 5 min read · Updated 13/10/2026
Every business mile you drive is worth money off your tax bill — 55p of allowable expense per mile, no receipts needed. Yet most sole traders claim a fraction of their real mileage, because logging it is the job nobody does. This guide covers the rates, the rules, and the painless way to keep the log.
For cars and vans, HMRC's simplified mileage rate is 55p per mile for the first 10,000 business miles in a tax year, and 25p per mile after that. The 55p rate took effect on 6 April 2026 (it was 45p from 2011 until then — journeys before that date still use 45p). Motorcycles are 24p flat. The rate is designed to cover fuel, insurance, servicing, wear and tear — everything. You claim the mileage instead of claiming actual vehicle costs, not on top.
| Journeys dated | First 10,000 miles | Over 10,000 |
|---|---|---|
| From 06/04/2026 | 55p | 25p |
| 06/04/2011 to 05/04/2026 | 45p | 25p |
Cars and vans. Motorcycles 24p and bicycles 20p a mile (unchanged for 2026/27). Source: GOV.UK, checked 13/10/2026. Want a figure for your own miles? Use the HMRC mileage calculator.
Trips to jobs, quotes and site visits, wholesaler runs, trips between jobs — all business. Your ordinary commute from home to a single fixed workplace is not, but for most tradespeople whose "workplace" changes weekly, the bulk of driving qualifies. When in doubt, log it with a note and decide at year-end.
HMRC can ask for evidence that your claimed miles are real. A contemporaneous log — date, distance, purpose — is the gold standard. A number invented in January is the opposite. The problem has never been the rule; it is that nobody maintains a spreadsheet from a van.
GraftG turns the log into a text: message "38 miles to the Hartley job" to your GraftG number and it is recorded with the date, the HMRC value calculated, and a monthly total on demand — text MILES REPORT for the breakdown. To check a figure first, run it through the free HMRC mileage calculator. There is a full guide in how to track mileage when self-employed. Mileage logging is included in the Solo plan at £14/month, 14-day free trial.
No — it rose to 55p from 6 April 2026 (announced 21 May 2026 and backdated), the first change since 2011. Journeys dated before 6 April 2026 still use 45p; the over-10,000-mile rate stays 25p. Always sanity-check GOV.UK at year-end.
No — the mileage rate replaces actual vehicle costs. You choose one method per vehicle: simplified mileage (55p/25p) or actual costs with receipts. Most sole traders find mileage simpler and often more generous.
A log kept at the time: date, journey, business purpose and distance. A WhatsApp message logged per trip through GraftG satisfies this neatly — every entry is dated and written down the moment it happened.
Keep reading
Solo from £14/month — 14-day free trial. No app to install.
Get started free