TaxYearSheetsHMRC mileage rates
| Vehicle | 2026/27 | 2025/26 | Self-employed? |
|---|---|---|---|
| Cars and vans – first 10,000 miles | 55p | 45p | Yes |
| Cars and vans – after 10,000 miles | 25p | 25p | Yes |
| Motorcycles | 24p | 24p | Yes |
| Bicycles | 20p | 20p | No – employees only |
Sources: GOV.UK – Simplified expenses: vehicles, GOV.UK – Travel mileage and fuel rates, GOV.UK – Increasing mileage rates (55p backdated to 6 April 2026), ITTOIA 2005 section 94F and GOV.UK – Tax relief for vehicles you use for work. Rates for 2027/28 onwards were not yet published when we checked: the government said it would set them out at Budget 2026.
Side hustle or new sole trader? Check the £1,000 trading allowance – you can't claim mileage as well as the allowance. Turnover over £20,000? See whether Making Tax Digital applies.
Questions
What is the HMRC mileage rate for 2026/27?
55p a mile for the first 10,000 business miles in a car or van, then 25p. It went up from 45p, backdated to 6 April 2026. Motorcycles are 24p a mile; bicycles are 20p a mile for employees.
Can sole traders claim 20p a mile for a bicycle?
Not as a simplified expense. GOV.UK lists cars, goods vehicles and motorcycles for simplified expenses. The 20p bicycle rate is an approved mileage rate for employees. Sole traders can claim the actual costs of a bicycle used for the business instead.
Can I switch between mileage rates and actual costs?
Not for the same vehicle. Once you use the flat rates for a vehicle, you must keep using them for as long as you use it for the business. You can't use them for a vehicle you've already claimed capital allowances on.
Is the 10,000 miles per car?
No. The higher rate covers the first 10,000 business miles across all your cars and vans in the tax year, added together.
Can I claim parking and tolls on top?
Yes. GOV.UK says you can claim other travel expenses, such as train journeys and parking, on top of your vehicle mileage.