Self-employed · simplified expenses
Mileage allowance calculator
Work out your business mileage claim for the 2026/27 tax year using HMRC's flat rates — now 55p per mile for the first 10,000 miles — then add the working-from-home flat rate and see the tax and National Insurance you'll save. Nothing is sent anywhere; it runs in your browser.
Your business travel
Enter the miles you drove for work this tax year — commuting to a permanent workplace doesn't count.
Working from home (optional)
If you work 25+ hours a month from home, HMRC lets you claim a flat monthly amount instead of splitting your household bills.
Tax saving (optional)
HMRC flat rates for 2026/27
These are HMRC's "simplified expenses" mileage rates — a flat amount per business mile that stands in for the actual cost of buying and running the vehicle (fuel, insurance, servicing, repairs). The car rate rose this year: it's 55p for the first 10,000 miles from 6 April 2026, up from 45p.
- Cars & goods vehicles — first 10,000 miles55p
- Cars & goods vehicles — each mile after 10,00025p
- Motorcycles — every mile24p
Flat rate or actual costs — not both
The flat rate replaces your real vehicle running costs; you can't also claim fuel, servicing or capital allowances on the same vehicle. Once you use the flat rate for a vehicle you must keep using it for that vehicle. You can still claim other travel — train fares, parking — on top.
Working-from-home flat rate
If you work from home 25 hours or more in a month, you can claim a flat monthly amount instead of working out the business share of your rent, heating and electricity. It's based on hours worked from home each month:
- 25 to 50 hours a month£10
- 51 to 100 hours a month£18
- 101 hours or more a month£26
The flat rate doesn't cover phone or internet — you can claim the business share of those separately on top.
Common questions
How much can I claim per mile in 2026/27?
For cars and goods vehicles it's 55p a mile for your first 10,000 business miles in the tax year, then 25p for every mile after that. Motorcycles are a flat 24p a mile. The 55p rate is new from 6 April 2026 — it was 45p in earlier years, so an old calculator will under-claim.
What are simplified expenses?
Simplified expenses are HMRC flat rates you can use instead of working out the actual costs. They cover vehicle mileage, working from home, and living at your business premises. They're optional, and open to sole traders and business partnerships that don't include a company.
Can I claim mileage and fuel costs?
No — the mileage flat rate already covers fuel, insurance, servicing, repairs and depreciation, so you can't claim those separately for the same vehicle. You choose per vehicle: flat-rate mileage, or the actual running costs plus capital allowances. Once you use the flat rate for a vehicle, you stick with it for that vehicle.
How much is the working-from-home flat rate?
£10 a month if you work 25–50 hours from home, £18 for 51–100 hours, and £26 for 101 hours or more. Below 25 hours a month you can't use the flat rate. It doesn't include phone or internet, which you claim separately.
Do I still need to keep a mileage record?
Yes. You need a log of your business journeys — dates, miles and purpose — to back up the claim if HMRC asks. The flat rate saves you working out running costs; it doesn't remove the need to record the miles themselves.
Does the mileage claim actually cut my tax?
Yes. It's an allowable business expense, so it reduces your taxable profit. A sole trader in the basic-rate band saves roughly 26% of the claim — 20% income tax plus 6% Class 4 National Insurance — and a higher-rate trader around 42%. Use the tax-band selector above to see your own figure.
More free tools
Every mile you log is tax you don't pay
The mileage claim is one expense. The tax you actually owe depends on your whole picture — profit, other income, payments on account. Our Self Assessment Tax Estimator does that end to end, so you can see the bill before it arrives and set the right amount aside.
- Self Assessment Tax Estimator 2026/27 — income tax, Class 4 NI, payments on account and a monthly set-aside, from your profit and expenses.
- Freelance Day-Rate & Profit Calculator — for freelancers who drive to clients: the day rate you need to hit your take-home.
- Rental Property ROI & Yield Calculator — the real after-Section-24 return on a let.
- Invoice Tracker & Log — auto paid/outstanding/overdue, with a chase list.
Excel and Google Sheets. Working formulas, not just formatting. Built and checked by us, with AI assistance, and every calculation verified.
Get the Tax Estimator — £9 →£9 on its own, or all four tools for £19, with a 14-day money-back guarantee.