Mileage Allowance Hmrc: Checklist for Personal Tax & Self Assessment Clients

The mileage allowance HMRC offers to the self-employed is a flat rate per business mile that you claim on your Self Assessment return instead of your actual car costs. For 2026/27 it is 55p a mile for the first 10,000 business miles and 25p after that, but a return you file now covers 2025/26, when the rates were different.

This is a pre-filing checklist for drivers who prepare a mileage claim for the Self Assessment tax return. It walks through your log totals, the 10,000-mile split, the right line on the self-employment pages and the black cab exclusion, so you can file with confidence. For the VAT angle read our mileage allowance and VAT FAQ, and for digital reporting see the Making Tax Digital mileage update.

Key takeaways

• Check which tax year your return covers first: the return due by 31 January 2027 is for 2025/26, which used 45p then 25p, while 55p then 25p applies from 6 April 2026.
• Use one method per vehicle: flat-rate mileage or actual running costs, never both for the same car.
• Black cabs and hackney carriages cannot use the simplified mileage rates, and nor can a vehicle you have claimed capital allowances on.
• You do not send your mileage log to HMRC with the return, but you must keep your records for at least five years after the 31 January filing deadline.
• Commuting between home and a regular place of work is not a business journey, so leave it out of your total.

What is the HMRC mileage allowance?

The HMRC mileage allowance is a flat rate per business mile that self-employed people can claim as a simplified expense instead of working out actual vehicle costs. It covers fuel, insurance, servicing and wear on the vehicle, so you do not claim those separately for the same car.

Which rate applies to the return I am filing now?

The rate depends on the tax year the return covers, not the date you file. According to HMRC's guidance on simplified expenses for vehicles, the flat rates before 6 April 2026 were 45p then 25p per mile, and for 2026/27 they are 55p then 25p.

Many guides now quote only the new figure, which is a trap if you are filing for the year that ended on 5 April 2026. A return for 2025/26 is due online by 31 January 2027, according to GOV.UK's Self Assessment deadlines page, and it uses the old rate. Our guide to key tax dates for Uber drivers lists every deadline in one place.

Is a mileage claim right for me, or should I claim actual costs?

Flat-rate mileage suits most drivers who do not buy their vehicle through the business and want a simple record. Claiming actual costs can suit drivers with high running costs and low mileage. HMRC lets you pick either method, but not both for the same vehicle, so compare the two before you commit.

GOV.UK says that once you use the flat rates for a vehicle, you must continue to use them for as long as that vehicle is used in the business. That makes the first year's decision a long-term one. The GOV.UK simplified expenses pages link to a checker that compares your flat-rate claim with an actual-cost claim, and it is worth running before you file.

When actual costs may be the better route

Actual costs mean you add up fuel, insurance, repairs, servicing and similar bills, then claim only the business share. You also claim capital allowances on the purchase of the car. If you claim capital allowances, the simplified mileage rates are not available for that vehicle.

Because of this link, the choice is really about the whole vehicle, not one line of the return. Our guide to allowable expenses for Uber drivers explains what else you can include when you go down the actual-cost route.

The pre-filing checklist: from mileage log to return

Work through these steps in order before you file. They take the numbers in your log and turn them into a clean, defensible claim on your Self Assessment return.

1. Confirm the tax year. Decide whether you are filing for 2025/26 (45p then 25p) or a later year (55p then 25p from 6 April 2026), and use only the rates for that year.
2. Check your vehicle is eligible. A car or goods vehicle you use for business can use flat rates, but a black cab, a hackney carriage or a vehicle where you claimed capital allowances cannot.
3. Total your business miles. Add up trips to pick up passengers, journeys between jobs and trips to buy supplies, but exclude commuting and private trips.
4. Test the log. Each entry should show the date, start and end points, purpose and distance. Fill any gaps now from trip histories, diary entries and receipts, and never estimate.
5. Split the total at 10,000 miles. Apply the higher rate to the first 10,000 business miles in the tax year and 25p to every mile above that.
6. Add tolls, parking and similar costs separately. GOV.UK confirms you can claim other travel costs, such as parking, on top of the flat-rate vehicle claim.
7. Enter the total in the right place. Put the figure in the car, van and travel expenses line of your self-employment pages, and check the box number against the current notes on GOV.UK.
8. Save your working. Keep the log, your calculation and the filed return together for at least five years after the 31 January deadline.

Our mileage calculator does the split for you, and the guide to mileage logs and record keeping shows how to build a log that stands up to a query.

How do I split my miles at 10,000?

You apply the higher rate to your first 10,000 business miles in the tax year and the lower rate to every business mile after that. The split runs per tax year from 6 April to 5 April, so your mileage count starts again at zero each April.

The simple sum is: miles up to 10,000 multiplied by the higher rate, plus miles over 10,000 multiplied by 25p. Use the rates for the year you are filing rather than blending two years. If you run more than one vehicle in the business, check how the 10,000 limit applies to you on the GOV.UK vehicles page, or ask an accountant before you file.

Illustrative example: a driver who covered 13,500 business miles

This is an illustrative example using an invented driver, not a real client. Priya drives her own saloon car for ride-hailing work and keeps a daily log. Her log shows 13,500 business miles for the tax year, plus £85 of parking and tolls that she paid on business trips.

If her return covers 2025/26, she works out 10,000 miles at 45p, which is £4,500, plus 3,500 miles at 25p, which is £875. Her mileage claim is £5,375. Adding the £85 of parking and tolls gives £5,460 in car, van and travel expenses.

If the same mileage fell in 2026/27, she would work out 10,000 miles at 55p, which is £5,500, plus 3,500 miles at 25p, which is £875. That is £6,375, and £6,460 with the parking and tolls. The figures are examples only, and the tax you save depends on your total profit.

Can a hackney carriage or black cab driver use the mileage allowance?

No. GOV.UK says simplified expenses cannot be used for vehicles designed for commercial use, for example black cabs, hackney carriages or dual-control driving instructors' cars. These drivers claim the actual costs of running the vehicle, and capital allowances for the purchase, instead of a flat rate.

Private hire drivers in ordinary saloon cars are in a different position, because their vehicles are not designed for commercial use in the same way. If you are unsure which side of the line your vehicle sits on, check the GOV.UK page or ask us before you file. Our guide to taxi driver tax and hackney carriages explains the actual-cost route in detail.

Which journeys count as business miles?

A business mile is any distance driven to earn your self-employed income, such as driving to a passenger or between jobs. GOV.UK states that travel between home and work is not an allowable expense, so ordinary commuting does not count, and neither does private driving.

This is where many drivers ask whether the trip home after a shift counts. HMRC's guidance on self-employed travel expenses does not give a driver-specific ruling, so apply the test carefully and keep the reason for each trip in your log. Where a journey is partly private, only the business part is claimable.

Common grey areas to check

• Driving to your first pick-up from home: treat this with care and take advice if your home is your main base.
• Waiting time between jobs: miles driven while you are available for work are generally business, but note why you drove them.
• Fuel stops, car washes and servicing runs: these are not separate claims under flat rates, because the rate already covers them.
• Trips with a personal stop: only the business share is claimable, so split the journey in your log.

What records must I keep, and for how long?

You must keep records of your business income and expenses, and for Self Assessment GOV.UK says to keep them for at least five years after the 31 January submission deadline. For a return filed online by 31 January 2027, that means keeping your records until at least the end of January 2032.

You do not send the log with your return, but HMRC can ask to see it during a check. A strong log has the date, start and end locations, purpose and miles for each trip, plus the odometer reading at the start and end of the tax year. Read HMRC's guidance on how long to keep your records and see our mileage log guide for templates.

Comparison: flat-rate mileage versus actual costs

This table sets the two methods side by side so you can choose the one that fits your vehicle and your records.

Common mistakes and the penalties they can trigger

Most mileage errors come from rushed logs and the wrong rate. HMRC can charge penalties where a return contains an inaccuracy, and the amount depends on the reason, so check the current penalty rules on GOV.UK. If HMRC opens an enquiry, professional representation is strongly recommended.

Where do the other parts of the return fit?

A mileage claim is one line on a wider return, so check how it fits with your other figures. Your turnover, other allowable costs and Class 4 National Insurance all feed the final tax bill, and the claim lowers profit rather than the tax itself.

VAT rules around mileage are covered in our mileage allowance and VAT FAQ, and quarterly reporting changes are covered in the Making Tax Digital update. If you trade through a company, read mileage allowance for limited company drivers instead, because the rules differ.

Key terms

• Simplified expenses: a flat-rate method for claiming certain costs, including vehicle mileage, without keeping every receipt.
• Capital allowances: a tax relief for the purchase cost of business assets such as a car, used instead of flat-rate mileage.
• Self Assessment (SA): the system for reporting income that is not taxed at source, filed on a yearly tax return.
• SA103: the self-employment pages of the tax return, where business income and expenses go.
• Class 4 NIC: National Insurance Contributions paid on self-employed profits above a set level.
• PHV: private hire vehicle, the licence category for most Uber and Bolt cars.

How Uber Driver Accountant helps

Uber Driver Accountant is a UK accountancy practice for drivers only, and we are independent of Uber and Bolt. We check your mileage log, help you choose between flat-rate and actual costs, and file your return for you, on fixed fees from £20 a month.

Our personal tax service covers the full Self Assessment return, including the vehicle claim. You can see all the options on our pricing page.

Conclusion and next step

A clean mileage claim comes down to four checks: the right tax year, the right rate, a log that supports the total and a vehicle that qualifies. Run through the checklist above before you file, and do not guess any figure. If you would rather hand it over, contact us and we will review your log and prepare the return.

Last reviewed 3 October 2026 by the Uber Driver Accountant tax team.

This article is general information and is not personal tax advice. Speak to a qualified accountant about your own circumstances, and use professional representation if HMRC raises a dispute or penalty.