Self-employed? There may be a simpler way to deal with your vehicle expenses.
If you use your vehicle for business, you may be able to calculate your allowable vehicle expenses using simplified mileage rates instead of working out the actual running costs.
The important part is keeping a reliable record of your business journeys and understanding which method is appropriate for you.
What are simplified mileage expenses?
Simplified expenses allow eligible self-employed people to use flat rates for business mileage rather than calculating the actual costs of running their vehicle.
You record the business miles travelled and apply the relevant mileage rate to calculate an allowable expense. This reduces taxable business profit; it is not a cash refund of the mileage amount.
Record your journey
Keep the date, business purpose, start and end locations, and business mileage.
Apply the mileage rate
Use the appropriate rate for your vehicle and circumstances.
Keep supporting records
Maintain a clear record of the journeys behind your expense claim.
A simple mileage example
Imagine you are a sole trader using your own car for business and you record 140 eligible business miles.
Example calculation
140 miles × 55p = £77.00
Using a rate of 55p per mile, the calculated expense would be £77.00. This is an illustrative example, not £77 paid directly to you by HMRC.
The applicable rate depends on the tax year, vehicle type, mileage band and your eligibility to use simplified expenses.
What mileage records should you keep?
Your records should explain the business journeys behind your claim. A practical mileage log will normally include:
- ✓Date of each business journey
- ✓Where the journey started and ended
- ✓Business purpose of the journey
- ✓Number of business miles travelled
- ✓Vehicle used
- ✓Supporting information where appropriate
Recording journeys as they happen makes it easier to maintain accurate information. If you miss a journey, correct your records using reliable supporting details rather than guessing.
Get your FREE Simplified Mileage Guide
Our practical 2026/27 guide explains simplified mileage, compares the different approaches, includes worked examples and provides a useful record-keeping checklist.
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Meet Going A2B
Going A2B helps you record business journeys, capture odometer photos, note the purpose of each trip and produce useful mileage reports.
It is designed to make business mileage records easier to manage, without requiring continuous GPS tracking.
No payment card required to start your trial.