Mileage Allowance 2026 in Bristol: Checklist for Local Drivers

The mileage allowance 2026 rate for cars and vans is 55p a mile for your first 10,000 business miles in the tax year, then 25p a mile after that, under HMRC's simplified expenses scheme. This checklist shows Bristol-based Uber, Bolt, private hire and taxi drivers exactly how to claim it correctly, alongside the local Clean Air Zone and licensing costs that sit alongside it.

If you drive for a living in Bristol, mileage is usually your single biggest tax deduction. Getting the method, the records and the local extras right can be worth hundreds of pounds a year, and getting it wrong can mean a rejected claim if HMRC ever asks questions.

Key takeaways

• The 2026/27 simplified mileage rate for cars and vans is 55p per mile up to 10,000 business miles, then 25p per mile after, but always check the current figure on GOV.UK before filing.
• Once you pick simplified mileage for a vehicle you must stick with it for as long as you use that vehicle in the business.
• Bristol's Clean Air Zone charges £9 a day for non-compliant taxis and private hire vehicles, on top of your tax position, verified on Bristol City Council's CAZ page.
• Hackney carriage (black cab) drivers in Bristol are generally excluded from simplified mileage and must record actual vehicle costs instead.
• A private hire driver licence from Bristol City Council currently costs £140 a year plus a £26 application fee, before test and check fees.

What is mileage allowance?

Mileage allowance is a flat-rate tax deduction for business driving. You multiply your business miles by HMRC's approved rate instead of tracking every fuel receipt, service bill, insurance premium and repair separately, which keeps your Self Assessment vehicle expenses simple, quick and consistent from one tax year to the next.

How much is the mileage allowance in 2026?

For cars and vans, the simplified expenses flat rate is 55p per mile for the first 10,000 business miles in the tax year, then 25p per mile for anything above that. Motorcycles have their own separate flat rate. These figures should always be double-checked on GOV.UK before you rely on them for a return, because HMRC updates rates from time to time.

According to HMRC's guidance on simplified expenses for the self-employed, sole traders and business partnerships with no company partners can choose between this flat-rate method and claiming actual running costs, for the 2026/27 tax year. Limited companies cannot use simplified expenses at all.

Who can use simplified mileage expenses?

Sole traders and ordinary partnerships can use simplified mileage on a car, van or motorcycle they use for business. It is not available to limited companies, and it is not available for a vehicle you have already claimed capital allowances on or included as a business expense in another way.

Most Uber, Bolt and private hire drivers operating as sole traders in Bristol can use this method. It suits drivers who do not want to track every fuel, servicing, insurance and repair bill separately, and it is usually simpler to keep on top of through the year.

Are Bristol hackney carriage (black cab) drivers treated differently?

Yes. A traditional hackney carriage is generally treated as a commercial vehicle for tax purposes rather than an ordinary car, so simplified mileage expenses do not usually apply and actual running costs must be recorded instead. This is a separate topic from the private hire checklist here, so see our dedicated guide to Bristol hackney carriage tax if you drive a black cab rather than a private hire vehicle.

Can I switch between simplified mileage and actual costs?

No, not for the same vehicle. Once you choose the flat-rate simplified method for a car or van, you must keep using it for as long as that vehicle remains in the business. You can choose a different method when you change vehicles, but you cannot flip back and forth year to year on one car to chase whichever method saves more tax.

What counts as business mileage for a Bristol driver?

Business mileage covers journeys with a business purpose, such as driving to pick up or drop off passengers, positioning for the next fare, and trips between temporary workplaces. Ordinary commuting from home to a single regular fixed base does not count, so keep this distinction clear in your log.

Most app-based drivers do not have one fixed workplace in the traditional sense, since fares start and finish in different places across the city. Because your pattern can be unusual, it is worth having an accountant confirm how HMRC's ordinary commuting rules apply to your specific set-up rather than guessing.

How do I set up a compliant mileage log? Step by step

1. Record your car's exact mileage on 6 April, the start of the tax year, as your baseline reading.
2. Log every business trip on the day it happens: date, start point, end point, purpose, and miles driven.
3. Keep a separate note of your total mileage for the year, business and private combined, so you can show the proportion that was business use.
4. Record fuel, insurance, MOT, servicing and CAZ charge receipts too, even if you plan to claim simplified mileage, in case you later need to compare methods before choosing.
5. Total your business miles at the end of the tax year and apply the correct rate: the first 10,000 miles at the higher rate, then the lower rate after that.
6. Enter the resulting figure in the vehicle costs section of your Self Assessment return, and keep the underlying log for at least five years after the filing deadline in case HMRC asks to see it.

Simplified mileage vs actual costs: which is better for a Bristol driver?

There is no single right answer: simplified mileage usually suits lower-mileage or older, cheaper-to-run vehicles because record-keeping is minimal, while actual costs can suit newer, higher-value or expensive-to-run vehicles with large fuel, finance or repair bills. Compare both once before choosing, since the choice locks in for that vehicle.

Illustrative example: a Bristol private hire driver's mileage claim

Illustrative example: Priya drives a private hire Toyota Prius across Bristol for Uber and Bolt work. In the 2026/27 tax year she records 14,200 business miles in her log, alongside 3,800 private miles for a total of 18,000 miles on the car.

Using simplified mileage, her first 10,000 business miles are claimed at 55p a mile, giving £5,500. Her remaining 4,200 business miles are claimed at 25p a mile, giving £1,050. Her total mileage deduction for the year is £6,550, which she enters as a vehicle expense on her Self Assessment return alongside her other allowable costs such as her Bristol private hire licence fee and phone bill.

Bristol private hire licensing costs to plan for

To drive a private hire vehicle in Bristol you need a driver licence from Bristol City Council, which currently costs £140 a year plus a £26 application fee, before additional fees for the enhanced DBS check, medical examination and knowledge test. According to Bristol City Council's driver licence guidance, you must be 18 or over, have held a full DVLA licence for at least 12 months, pass an enhanced DBS check and a medical, sign a DVLA mandate, pass a Bristol geography knowledge test, and complete safeguarding training by your first renewal.

Licences can run for 1, 2 or 3 years, so budgeting for renewal costs alongside your mileage and running costs each year avoids surprises. These licensing fees are themselves a deductible business expense, separate from your mileage claim.

Bristol Clean Air Zone: what it costs and who is exempt

Bristol's Clean Air Zone charges £9 a day for taxis and private hire vehicles that do not meet the exhaust emission standard, according to Bristol City Council's charges and vehicle checker page. The charge applies 24 hours a day, every day of the year, and can be paid up to six days before travel or up to six days after entering the zone.

Exempt vehicles include Euro 4, 5 and 6 petrol cars, roughly 2006 onwards, Euro 6 diesel cars, roughly late 2015 onwards, fully electric and hydrogen vehicles, motorbikes, and vehicles retrofitted under the Energy Saving Trust's Clean Vehicle Retrofit Accreditation Scheme. Check your specific vehicle against Bristol City Council's checker rather than relying on the age guide alone, since exact Euro standard depends on the individual vehicle.

Common mistakes and the penalty each triggers

• Estimating mileage instead of logging it: HMRC can disallow the whole claim if records do not support it, which can trigger a higher tax bill plus interest.
• Switching methods mid-way on the same vehicle: this breaches the simplified expenses rule and can invalidate the year's claim, so check the current position on GOV.UK before changing anything.
• Claiming commuting miles as business miles: HMRC treats this as an incorrect return, which can lead to a penalty based on behaviour, ranging from a small percentage of the extra tax for a careless error up to a much larger penalty for a deliberate one.
• Missing the Self Assessment deadline while sorting out mileage records late: late filing brings an automatic penalty even if no tax is owed, and late payment adds interest on top.

Key terms

• UTR (Unique Taxpayer Reference): the 10-digit number HMRC uses to identify your Self Assessment record.
• NIC (National Insurance Contributions): payments that build your entitlement to certain state benefits and the State Pension.
• MTD (Making Tax Digital): HMRC's programme requiring digital record-keeping and more frequent reporting, phased in for Income Tax from April 2026.
• PHV (Private Hire Vehicle): a licensed vehicle that can only be booked in advance through an operator, as distinct from a hackney carriage that can be hailed on the street.
• CAZ (Clean Air Zone): a defined area where vehicles that do not meet emission standards pay a daily charge to drive in.

How does Making Tax Digital affect mileage records?

Making Tax Digital for Income Tax is being phased in from 6 April 2026 based on qualifying income thresholds, with lower thresholds following in later years; check the current figures on GOV.UK. It changes reporting frequency and format, not the underlying mileage rates, so a well-kept log stays useful either way.

Our guide to Making Tax Digital explained for Uber drivers covers the wider changes in more depth, including which income thresholds apply and when.

How Uber Driver Accountant helps

Uber Driver Accountant is a fixed-fee accountancy service built specifically for Uber, Bolt, private hire and taxi drivers, from £20 a month, and we are independent of Uber, Bolt and any other platform. We help Bristol drivers choose the right vehicle expense method, set up a mileage log that holds up if HMRC ever asks questions, and file an accurate Self Assessment return on time.

If you want help getting your mileage claim, CAZ costs and licensing fees onto one clean tax return, see our personal tax service for drivers or use our mileage calculator to get a quick estimate of your deduction before you speak to us.

For drivers who also cover other UK cities, our checklists for Leeds night drivers and Glasgow drivers cover the same mileage rules with different local detail, and our limited company mileage guide explains how the rules differ if you incorporate.

Ready to get your Bristol mileage claim right?

A correct mileage claim, combined with properly recorded CAZ and licensing costs, is one of the simplest ways to reduce your Bristol driving tax bill without cutting corners. Contact Uber Driver Accountant to talk through your specific vehicle and mileage pattern before your next Self Assessment deadline.

Last reviewed 28 September 2026 by the Uber Driver Accountant tax team.

This article is general information, not personal tax advice. Every driver's circumstances are different, so speak to a qualified accountant before relying on it, and where HMRC raises a dispute or penalty, professional representation is recommended.