Mileage tracking for tradespeople: HMRC rates for 2026/27

If you drive for work, your mileage is money. Most sole traders in the trades cover thousands of business miles a year between jobs, suppliers and customers, and every one of those miles can reduce your tax bill. The trouble is that miles are easy to lose. A trip here, a run to the merchant there, and by the time the tax return comes round you are guessing. This guide covers what you can claim, how the rules work, and how to keep records HMRC will accept.

See what your mileage claim is actually worth. Add it to your expenses in the free self-employed tax calculator and you can watch your Income Tax and Class 4 National Insurance bill drop as the claim goes up.

Key takeaways: You can claim 55p a mile for the first 10,000 business miles in the tax year, then 25p a mile after that. You need a record of the date, journey and distance for every trip. And you cannot claim mileage and your vehicle running costs at the same time, so pick the method that pays you more.

The mileage rates for 2026/27

HMRC sets approved mileage rates that let you claim a flat amount per business mile instead of working out the actual running cost of your vehicle. For the 2026/27 tax year, the first 10,000-mile rate for cars and goods vehicles has risen from 45p to 55p. The rates are:

• Cars and goods vehicles: 55p per mile for the first 10,000 business miles in the tax year, then 25p per mile after that

• Motorcycles: 24p per mile

The rate is meant to cover everything: fuel, insurance, servicing, repairs, road tax and wear and tear. That is why you cannot also claim those running costs separately if you use this method.

What counts as a business mile

A business mile is any journey you make wholly and exclusively for work. For a tradesperson that usually means travelling from your base to a job, between jobs, to a wholesaler or merchant, or to see a customer to quote a job.

The grey area is commuting. Travel from home to a permanent place of work does not count. The good news is that most sole traders do not have a permanent workplace. If you work at a different site most days, the journey from home to that temporary site can usually be claimed. If you are ever unsure, the test is simple: was this trip for the business, or was it ordinary private travel?

The two ways to claim

Simplified mileage. You track your business miles and multiply them by the approved rate. It is quick, it needs less paperwork, and for most people driving a reasonably efficient van it works out well. Once you choose this method for a vehicle you have to stick with it for as long as you own that vehicle.

Actual costs. You add up everything the vehicle costs to run over the year, then claim the business-use share. This can be worth more if you run an expensive vehicle, do very high mileage, or have had a big repair bill, but it means keeping every fuel and garage receipt and working out your business-use percentage.

You cannot mix the two for the same vehicle in the same year. It is worth doing the sum both ways once, then sticking with whichever pays you more.

What records HMRC expects

You do not need to send your mileage log with your tax return, but you do need to be able to produce it if HMRC asks. A good record for each trip shows the date, where you went and why, and the number of miles. A note like “14 May, home to job in Redhill and back, 22 miles” is plenty.

Keep it up as you go rather than reconstructing it in January. Trying to remember a year of journeys from memory is where people either lose miles they were owed or claim ones they cannot back up. Records should be kept for at least five years after the January deadline for that tax year.

Common mistakes that cost you money

• Only logging the big jobs and forgetting the short runs to the merchant, which add up fast

• Claiming the school run or the weekly shop because it happened on the way to a job

• Guessing a round number at year end instead of keeping a real log

• Claiming mileage and fuel receipts on the same vehicle, which is not allowed

A two-minute monthly routine

The tradespeople who claim every mile are not the most organised, they just have a habit. Once a month, go through the diary, match each job to the miles driven, and add anything the log missed. Ten minutes a month beats a stressful evening the night before the deadline, and it means the full allowance actually lands in your pocket.

Mileage is one part of the bigger picture: see what expenses self-employed tradespeople can claim and prepare your records for Making Tax Digital as a sole trader.

Recording mileage as you work, rather than after the fact, is the whole game. TradePilot lets you record business journeys manually alongside your other records, but a notebook in the van glovebox works too. What matters is that the miles are captured while you still remember them.