Self-Employed Mileage Allowance (Simplified Expenses) 2026/27

From 6 April 2026, HMRC increased the simplified mileage rates for self-employed people. These are the rates you use when claiming mileage as a business expense on your Self Assessment.

Approved Mileage Rates (Self-Employed) — 2026/27

• Cars & vans: 55p per mile for the first 10,000 business miles, 25p per mile for all miles over 10,000.
• Motorcycles: 24p per mile (unchanged).
• Bicycles: 20p per mile (unchanged).

These rates apply to self-employed people using simplified expenses, which HMRC confirms are available to sole traders, partnerships of individuals, and unincorporated businesses.

What This Means for You (Self-Employed)

You now claim 55p per mile for work travel

This covers:

• Fuel
• Insurance
• Repairs
• Depreciation
• MOT
• Wear and tear

You do not need to keep fuel receipts — just an accurate mileage log.

The increase is backdated

The 55p rate applies from 6 April 2026, even though it was announced in May.

So, you should:

• Update your mileage log from 6 April 2026.
• Apply the new rate on your 2026/27 Self Assessment.

You must stick with one method per vehicle

If you use simplified mileage rates for a vehicle, you must continue using them for that vehicle every year.

This is NOT the same as Advisory Fuel Rates

AFRs are for company cars only. Self-employed people using their own vehicle do not use AFRs.

Quick Self-Employed Summary

• Use 55p for the first 10,000 miles, then 25p.
• Applies to your own car, used for business travel (not commuting).
• You claim it as an expense deduction on your tax return.
• No fuel receipts needed — just mileage records.
• Backdated to 6 April 2026.