Self-Employed Mileage Allowance 2026: Rates for Tradespeople

For a self-employed tradesperson, mileage is one of the biggest tax deductions you're entitled to, and it's also one of the most commonly under-claimed. If you drive to job sites, between jobs, or to collect materials, HMRC’s simplified expenses allow you to claim a fixed rate per business mile instead of tracking every fuel receipt. This can significantly simplify your bookkeeping and ensure you don't miss out on valuable deductions when it comes time to file your taxes.

Let's take a closer look at the 2026 rates, what counts as a business mile, and how to keep records that satisfy HMRC and Making Tax Digital (MTD) requirements.

2026 mileage rates (unchanged, but worth knowing)

• 45p per mile for the first 10,000 business miles in the tax year.

• 25p per mile for every business mile after 10,000.

• Rates are the same for cars and vans; motorcycles are 24p per mile; bicycles 20p per mile.

The rates haven't changed since 2011. This consistency means that maintaining accurate mileage records is more important than ever for your financial health. Given the rising costs of fuel and vehicle maintenance, making sure you capture every eligible mile can have a significant impact on your bottom line.

What counts as a business mile (tradesperson edition)

• Counts: home to job site, site to site, site to merchants/suppliers, site to skip yard/dump, site to customer meetings.

• Doesn't count: the commute from home to your permanent workplace or registered office, and any private journeys.

• Tip: if your home is your only base of operations, travel to the first job and home from the last job generally counts as business mileage.

Understanding what constitutes a business mile can save you from potential disputes with HMRC. For tradespeople, it's common to work from different locations each day, and any travel undertaken as part of your work duties can typically be claimed. However, personal trips or commutes to a fixed, permanent place of work are not eligible for the mileage allowance.

How to claim (and record it MTD-ready)

1. Log every business journey: date, start, end, purpose, and miles.

2. Multiply business miles by 45p (25p beyond 10,000) to get your deduction.

3. Enter it on your Self Assessment as a business expense.

4. From April 2026, keep those records digitally. MTD ITSA requires digital records, and a mileage log inside your invoicing tool keeps everything in one place.

Proper record-keeping is essential to make the most of your mileage claim. Logging each journey with relevant details ensures you have a robust record in case HMRC queries your claims. The transition to digital records under MTD means that having a reliable system in place will not only save you time but also reduce stress when deadlines approach.

Many UK tradespeople also find it helpful to review allowable expenses for the self-employed at this stage.

Worked example

Suppose you drive 14,000 business miles in 2025/26. The calculation would be: 10,000 miles at 45p equals £4,500, plus 4,000 miles at 25p equals £1,000. This totals a £5,500 mileage deduction. Depending on your tax rate, this could save you significant money. At a 20% basic-rate tax band, you'd save £1,100 off your tax bill, while at a 40% rate, you'd save £2,200. All it takes is fifteen minutes of logging each month to ensure these savings. It's well worth the effort when you consider the potential financial benefits.

MTD and your mileage records

From 6 April 2026, sole traders earning over £50,000 must keep digital records and file quarterly updates. Mileage is an expense, so it needs to be a digital record. Recording it as you go, perhaps in an MTD-ready invoicing app, means your quarters are ready in minutes and nothing gets forgotten in January. The shift to digital is a significant change, but it also brings efficiency and accuracy to your tax reporting processes. By keeping your records up to date, you can avoid last-minute scrambles and potential errors when filing your returns.

If you are sorting this alongside other compliance work, read claiming mileage as a tradesperson.

Additional Tips for Maximising Your Mileage Deductions

In addition to regular record-keeping, consider the following strategies to maximise your mileage deductions:

• Plan Your Routes Efficiently: Combining trips can save not only time but also increase your deductible mileage. For instance, if you have multiple jobs in the same area, plan your visits in a logical order to minimise unnecessary travel.

• Regular Vehicle Maintenance: Keeping your vehicle in good condition not only ensures safety but also keeps it fuel-efficient. This can indirectly reduce your business expenses, leaving more room for deductible mileage claims.

• Use Apps Wisely: There are several apps available that can track your mileage automatically. These apps can sync with your accounting software to streamline your record-keeping efforts.

Implementing these strategies can lead to more accurate claims and potentially higher deductions, ultimately benefiting your business's financial health.

FAQs

Is the 45p per mile rate changing in 2026?

HMRC's approved mileage rate has been 45p per mile for the first 10,000 business miles and 25p after that since 2011 and remains unchanged for 2025/26 and 2026/27. The key is keeping accurate records of business miles. While rates have not changed in years, economic factors might influence future updates, so staying informed on any announcements from HMRC is wise.

Related: see working-from-home expenses for practical next steps.

Can I claim for driving to a job site?

Yes. Driving from your home to a job site, and between sites, is a business journey for self-employed tradespeople. Driving from home to your registered office or a permanent workplace is not claimable. It's important to clearly distinguish between claimable and non-claimable journeys in your records to avoid any confusion or potential disputes.

Does MTD affect my mileage records?

Yes, and it's a benefit. Under Making Tax Digital, starting from April 2026, your mileage expenses need to be digital records. Recording mileage in an MTD-ready tool means your quarterly updates and Self Assessment are ready without a shoe-box of fuel receipts. This shift encourages more organised and efficient record-keeping, reducing the risk of errors and missing documentation.

What if I forget to record a journey?

It's easy to overlook logging a journey in the hustle of a busy day. However, keeping a notepad in your vehicle or using a mobile app can help you capture details on the go. If you realise you've missed recording a journey, try to document it as soon as possible while the details are still fresh in your mind. Regularly updating your records reduces the chances of missing entries.

Worth pairing this with our guide to simplified expenses for sole traders.

How do I handle private journeys mixed with business travel?

When a journey includes both personal and business elements, only the business portion is claimable. For example, if you visit a job site and then run personal errands, only the distance to and from the job site qualifies. Keeping a detailed log helps you separate these journeys clearly.

Future Considerations for Self-Employed Tradespeople

As the tax landscape continues to evolve, staying informed on changes is vital. HMRC may update mileage rates or other allowances, impacting your deductions. Additionally, the push towards digital solutions in tax reporting highlights the importance of staying abreast of technological advances. Engaging with professional accountants or financial advisors can provide insights into optimising your tax strategy. Staying informed and adaptable ensures that you can maximise your tax efficiency while minimising administrative burdens.

In conclusion, while the mileage rates for self-employed tradespeople remain unchanged as we approach 2026, the importance of accurate and digital record-keeping cannot be overstated. By staying organised and leveraging technology, you can ensure that you claim every mile you’re entitled to, ultimately enhancing your business's financial health.