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Business mileage logs: what HMRC expects you to record

Expenses

Business mileage logs: what HMRC expects you to record

Mileage is one of the most valuable expenses for the self-employed and company directors, but it’s also a common target in HMRC checks.

AABy Asim AbbasUpdated 11 November 20263 min read
Driver keeping a business mileage log
In 30 seconds
  • Rates: 45p a mile for the first 10,000, then 25p
  • Motorcycles 24p, bicycles 20p
  • Record date, purpose, start, end and miles
  • Commuting to a permanent workplace isn’t business

A good mileage log proves your claim and stops you guessing at year end. It doesn’t need to be complicated.

This guide explains what to record, the rates and the difference between business and commuting journeys.

Approved mileage rates

VehicleFirst 10,000 milesOver 10,000 miles
Cars and vans45p25p
Motorcycles24p24p
Bicycles20p20p

Sole traders can use these simplified rates instead of actual costs, if they chose that method when they first used the vehicle. Directors and employees can receive these rates tax-free.

What to record

  • Date of the journey
  • Start and end postcode or location
  • Purpose, such as client name or job
  • Business miles
  • Total running total for the 10,000-mile threshold

Mileage tax calculator

Your mileage claim.

Calculate

Business or commuting?

  • Business: visiting clients, going to temporary workplaces, travelling between sites, buying supplies
  • Commuting: home to your permanent workplace
  • Home-based businesses: journeys from home to clients are usually business
  • Temporary workplace: where you expect to work for under 24 months
For example

A self-employed electrician drives 12,500 business miles in 2026/27. His claim is 10,000 × 45p (£4,500) plus 2,500 × 25p (£625), a total of £5,125. As a basic rate taxpayer with Class 4 NI at 6%, that saves him £1,332.50.

Fixed-fee accountancy support

Transparent monthly packages for sole traders, landlords and limited companies. Fixed fees agreed upfront, VAT included.

Get a fixed-fee quoteCall 0161 531 4179

Using apps

GPS mileage apps can log trips automatically, letting you classify each as business or personal. Exported logs make good evidence.

Passengers

Employers can pay an extra 5p a mile tax-free for each employee passenger on business trips.

VAT on mileage

VAT-registered businesses can reclaim VAT on the fuel part of mileage payments, if they keep fuel receipts.

See HMRC’s mileage rates, our mileage calculator and our mileage vs actual costs guide.

What should I do next?

Start a log today

App or spreadsheet.

Classify every trip

Business or personal.

Track the 10,000 threshold

45p then 25p.

Get help

Our team.

Frequently Asked Questions

What is the mileage rate for 2026/27?

45p a mile for the first 10,000 business miles and 25p after, for cars and vans.

What should a mileage log include?

Date, start and end, purpose and miles.

Is driving to my office business mileage?

Not if it is your permanent workplace.

Can I claim mileage as a director?

Your company can pay 45p a mile tax-free.

Can I reclaim VAT on mileage?

On the fuel element, with fuel receipts.

Need help with this? Wingate Accountants offers fixed-fee online accountancy support across the UK. Call 0161 531 4179 or request a quote at wingateaccountants.co.uk.

AA

About the Author

Asim Abbas
I’m Asim Abbas, founder of Wingate Accountants and a Chartered Certified Accountant. I help sole traders, landlords and directors stay on top of their tax with fixed fees and plain-English advice.

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