Ever get that slightly annoying feeling when you fill up your car for a client job and think… “Can I claim this?”
You’re not alone.
Mileage claims are one of the most common — and most misunderstood — expenses for UK sole traders. Get it right and you’ll legally reduce your tax bill. Get it wrong and you could under-claim (ouch) or over-claim (double ouch if HMRC asks questions).
Let’s break it down in plain English.
✅ TL;DR (Key Takeaway)
If you're a UK sole trader using your own car for business, you can usually claim:
- 45p per mile for the first 10,000 business miles in a tax year
- 25p per mile after that
These are HMRC’s official “Approved Mileage Allowance Payments” (AMAP) rates.
You must keep a record of your business miles only.
Under Making Tax Digital (MTD) for Income Tax, you’ll need digital records and quarterly updates.
If you drive for work, mileage claims are one of the simplest ways to reduce your tax bill — legally.
What Is a Mileage Claim?
A mileage claim lets you deduct the cost of business travel using your personal vehicle.
Instead of claiming petrol, insurance, servicing, and depreciation separately, HMRC lets you use a flat rate per mile. It’s designed to keep things simple.
Think of it like this:
Rather than itemising every coffee bean, HMRC lets you say “each cup costs X” and move on with your life.
Much easier.
What Are the Official HMRC Mileage Rates?
The rates are set by HM Revenue & Customs (HMRC).
🚗 Cars and Vans
- 45p per mile for the first 10,000 business miles in the tax year
- 25p per mile after 10,000 miles
🏍 Motorcycles
- 24p per mile
🚲 Bicycles
- 20p per mile
These are called Approved Mileage Allowance Payments (AMAP).
They apply to sole traders, partnerships, and employees using personal vehicles for work.
Who Can Claim Mileage?
You can usually claim if:
- You’re a sole trader
- You use your own vehicle
- The journey is wholly and exclusively for business
That last bit is important.
✅ Business journeys include:
- Driving to a client meeting
- Travelling between job sites
- Going to buy stock or supplies
- Visiting your accountant
❌ You cannot claim:
- Your normal commute (home → regular workplace)
- School runs
- Personal trips
If you’re a mobile freelancer (photographer, tradesperson, consultant, delivery driver), mileage claims are often a major expense category.
Example: How Much Could You Claim?
Let’s say you’re a freelance web designer and drive:
- 6,000 business miles in the tax year
You’d claim:
6,000 × 45p = £2,700 deductible expense
If you’re in the 20% income tax band, that could mean around:
£540 less income tax
Not bad for something you’re already doing.
Can You Claim Petrol Instead?
Short answer: No — not if you use mileage rates.
You must choose one method:
- Simplified expenses (mileage rate)
- Actual costs (fuel, insurance, repairs, depreciation)
Most sole traders choose mileage rates because:
- It’s easier
- It often works out well
- It keeps records simple
- It’s ideal for MTD compliance
Once you choose mileage for a vehicle, you generally need to stick with it for that vehicle.
What Records Do You Need?
HMRC requires:
- Date of journey
- Start and end location
- Number of miles
- Business purpose
Under HM Revenue & Customs Making Tax Digital (MTD) for Income Tax, you must keep digital records and submit quarterly updates.
No more shoebox full of petrol receipts.
Think of MTD like switching from paper maps to Google Maps — it’s digital, trackable, and harder to “estimate later.”
What About Electric Cars?
Good news: the same mileage rates apply to electric cars.
You still claim:
- 45p per mile (first 10,000 miles)
- 25p after that
You don’t claim charging separately if using mileage rates.
What If You Use Your Car for Both Business and Personal Use?
That’s normal.
You simply claim business miles only.
If you drove 12,000 miles total and 4,000 were business:
You claim 4,000 miles — not 12,000.
Simple.
Mileage Claims + Making Tax Digital (MTD)
From April 2026:
- Sole traders earning over £50,000 must comply with MTD
- From April 2027: threshold drops to £30,000
MTD for Income Tax means:
- Digital record-keeping
- Quarterly submissions to HMRC
- End-of-year final declaration
Mileage tracking will need to be recorded digitally and submitted as part of your quarterly update.
This isn’t optional — it’s a legal requirement.
Common Mileage Mistakes
Let’s save you some future stress:
- ❌ Estimating at year end
- ❌ Claiming commuting
- ❌ Mixing petrol receipts with mileage rates
- ❌ Forgetting to log small trips
- ❌ Not keeping digital records under MTD
Mileage is simple, but only if you track it properly.
Why This Matters for Sole Traders
If you're self-employed, every allowable expense reduces your taxable profit.
Mileage is often one of the biggest legitimate deductions available.
And with MTD coming in, the days of “I’ll sort it in January” are numbered.
You need something simple.
Not a giant accounting platform built for corporations.
The Easy Way to Handle Mileage (Without Accounting Headaches)
Big platforms like:
- Xero
- QuickBooks
- FreeAgent
…are powerful.
But many sole traders don’t want full accounting software.
They just want:
- Track income
- Track expenses (like mileage)
- Stay compliant with HMRC
- Submit MTD updates
- Not think about it again
That’s exactly why we built Cuppa.
Cuppa is:
- Built specifically for UK sole traders
- Designed around MTD from day one
- Simple and DIY
- Not bloated with features you don’t need
It’s like using a clean notebook instead of a corporate finance system.
Final Thought
Mileage claims aren’t complicated.
But ignoring them costs you money.
With HMRC’s 45p rate, even a few thousand business miles can make a real dent in your tax bill.
And with MTD coming, digital tracking isn’t just smart — it’s required.
☕ Ready to Make Tax Simple?
If you're a sole trader and want a calm, simple way to:
- Track mileage
- Record income
- Stay compliant with MTD
- Avoid accountant-level complexity
👉 Try Cuppa today
Built for sole traders. No jargon. No overwhelm. Just what you need — and nothing you don’t.