What counts as business mileage?
A business journey is any trip you make in the course of your work — travelling to a client, visiting a supplier, attending a business meeting, or going to a job site. The key test is that the journey has a genuine business purpose.
What doesn't count:
- Ordinary commuting — travelling between your home and a fixed, regular place of work. HMRC does not allow a deduction for this.
- Personal journeys — school runs, shopping, leisure travel, even if you happen to be in your work vehicle.
If you're a sole trader who travels to different client sites every day — a plumber, a consultant, a photographer — then almost all your driving is likely business mileage. If you rent a fixed office or workspace and drive there each morning, that commute is not claimable.
HMRC approved mileage rates
The simplest way to claim vehicle costs is the HMRC Approved Mileage Allowance Payments (AMAP) scheme. You multiply the number of business miles you drive by a fixed rate per mile. No receipts for fuel, insurance, or servicing are needed — the rate is designed to cover all those costs.
| Vehicle type | First 10,000 business miles | Over 10,000 miles |
|---|---|---|
| Cars and vans | 45p per mile | 25p per mile |
| Motorcycles | 24p per mile | 24p per mile |
| Bicycles | 20p per mile | 20p per mile |
The 10,000-mile threshold resets at the start of each tax year (6 April). The rates above apply regardless of whether your vehicle is petrol, diesel, or electric.
Example: You drive 8,000 business miles in a year.
8,000 miles × 45p = £3,600 deductible expense
If you're a basic-rate taxpayer, that saves you roughly £720 in tax.
The mileage rate vs actual costs
The mileage rate is not your only option. You can alternatively claim the actual costs of running your vehicle — fuel, insurance, servicing, MOT, road tax, and finance charges — apportioned by the business percentage of your total mileage.
For example, if 70% of your mileage is for business, you could claim 70% of your total vehicle costs.
However, there's a catch: you cannot switch methods for the same vehicle. Once you start using the mileage rate, you must continue using it for that vehicle. Once you start using actual costs, you must continue. Choose carefully at the outset — the mileage rate is almost always simpler, and for lower-mileage drivers it's often more generous too.
Cars are always outside cash basis: Regardless of which accounting method you use, you cannot claim a car as a direct business expense. Vehicle costs must go through the mileage rate or actual costs calculation — not as a line-item purchase.
How to keep a mileage log
HMRC requires you to keep records of your business mileage. Without a log, you cannot substantiate your claim if HMRC opens an enquiry.
Each entry in your mileage log should include:
- Date of the journey
- Starting point and destination
- Business purpose of the trip (e.g. "client meeting — Smith & Co, Manchester")
- Number of miles travelled
- Running total for the tax year (to track the 10,000-mile threshold)
A simple spreadsheet works fine. There are also dedicated mileage tracking apps that use your phone's GPS to log journeys automatically — these can make record keeping effortless if you drive frequently for work.
Electric vehicles
If you drive an electric vehicle, the HMRC approved mileage rates (45p/25p per mile) apply in exactly the same way as for petrol or diesel cars. There is no separate rate for EVs under the simplified mileage scheme.
One practical consideration: if you charge your EV at home, you'll want to separate the business-related electricity cost from your personal usage. Under the mileage rate, this is already covered — you're claiming per mile, not per kilowatt hour. Under the actual costs method, you'd need to apportion your electricity bill, which adds complexity.
For most EV drivers, the mileage rate is the simpler and more straightforward choice.
Recording mileage digitally under MTD
Under Making Tax Digital for Income Tax, you must keep digital records of your business income and expenses. Mileage claimed under the AMAP scheme is an allowable expense — it needs to be recorded in your MTD software alongside your other costs.
Record it as a business expense in the period the journeys took place. Your mileage log itself is your supporting record — keep it digitally (spreadsheet, app, or note in your MTD software) so it's available if HMRC requests it.
You don't attach the log to your quarterly updates; you just submit the total mileage expense figure. But the log must exist, be accurate, and be retained for at least five years after the relevant 31 January deadline.
Keep your expense records MTD-ready
Bart connects to your bank and keeps your business expenses organised throughout the year — so your quarterly updates are always ready on time, with no manual data entry.
Try Bart freeFrequently asked questions
Can I claim mileage for travelling to and from my regular place of work?
No. HMRC does not allow a deduction for ordinary commuting — travelling from home to a permanent place of work. If you are self-employed and travel to different client locations each day, those journeys are business mileage and can be claimed.
Can I switch from the mileage rate to actual costs partway through?
No. Once you have claimed using the mileage rate for a particular vehicle, you must continue to use it for that vehicle. You cannot switch to actual costs later. If you acquire a new vehicle, you can choose which method to use for it.
Do I need fuel receipts if I'm using the mileage rate?
No. The HMRC mileage rate is designed to cover all vehicle running costs — fuel, insurance, servicing, depreciation — in a single per-mile figure. You do not need to keep fuel receipts. What you do need is a mileage log showing the date, destination, purpose, and distance of each business journey.
Can I claim mileage for an electric vehicle?
Yes. The HMRC approved mileage rates (45p/25p per mile) apply to electric vehicles in exactly the same way as petrol or diesel cars. There is no separate rate for EVs under the simplified mileage scheme.