Free Tool
Mileage Expense Calculator
Estimate your mileage claim and tax relief using HMRC approved rates for self-employed service providers.
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What counts as business mileage?
Guidance only. Mileage rates and tax treatment can change, so always check current HMRC guidance.
How to Calculate Mileage Expenses
Most self-employed people use the simplified expenses method. This uses HMRC flat mileage rates instead of tracking every fuel, repair, and running cost.
It is usually the easiest option for sole traders and small businesses. The actual costs method can be better in some cases, such as very fuel-efficient vehicles or where business mileage is low.
HMRC Mileage Rates 2024/25
HMRC calls these rates Approved Mileage Allowance Payments (AMAP). The rates below have remained the same since 2012.
| Vehicle Type | First 10,000 Miles | Over 10,000 Miles |
|---|---|---|
| Car or van | 45p per mile | 25p per mile |
| Motorcycle | 24p per mile | 24p per mile |
| Bicycle | 20p per mile | 20p per mile |
What Counts as Business Mileage?
Eligible journeys:
- Travelling to client appointments
- Travelling between work sites
- Business errands such as bank, post office, or supplier visits
- Temporary workplace travel
Not eligible:
- Commuting from home to your regular place of work
- Personal trips
Home office rule: if your home is your main business base, travel to client locations can often count from the first mile.
How to Keep Mileage Records
HMRC expects records showing date, start and end location, journey purpose, and miles driven. Keep a mileage log in a spreadsheet, app, or notebook.
Keep records for at least 5 years after the 31 January tax return deadline. If you use simplified expenses, you do not need fuel receipts for mileage claims.
Simplified Expenses vs Actual Costs - Which Should You Use?
Simplified expenses is easier, predictable, and does not require detailed receipt tracking. Actual costs means tracking fuel, insurance, repairs, servicing, and depreciation, then applying the business use percentage.
Once you choose actual costs for a vehicle, you cannot switch back to simplified expenses for that same vehicle. For most self-employed service providers, simplified expenses is usually the better fit.
Frequently Asked Questions
Can I claim mileage if I'm self-employed?
Yes, if you use your personal vehicle for business journeys, you can claim mileage expenses on your Self Assessment tax return using HMRC's approved rates.
What is the HMRC mileage rate for 2024/25?
For cars and vans, it's 45p per mile for the first 10,000 miles and 25p per mile after that. Motorcycles are 24p per mile and bicycles are 20p per mile.
Do I need receipts for mileage claims?
No, when using simplified expenses you don't need fuel receipts. But you do need a mileage log showing date, destination, purpose, and miles for each journey.
Can I claim mileage for cycling to clients?
Yes, HMRC allows 20p per mile for bicycles used for business travel.
What's the difference between mileage allowance and fuel receipts?
Mileage allowance uses a flat rate per mile regardless of actual fuel costs. Claiming actual costs means tracking all vehicle expenses and calculating the business portion. You can only use one method per vehicle.
Can I claim mileage if I'm a limited company director?
Yes, but it works differently. The company reimburses you at HMRC rates, which is then a tax-free payment to you and a deductible expense for the company.