Tax rule UK
Simplified expenses for vehicles: 55p a mile for the first 10,000 miles
A sole trader can claim a flat rate for each business mile in place of a vehicle's actual costs: 55p a mile for the first 10,000 miles and 25p a mile after, 24p a mile on a motorcycle. What HMRC says, and how Bilbx's Tax Lab claims it.
Cars and goods vehicles, the first band
55p a mile
Checked against HMRC's own pages on . This is the figure Bilbx uses.
What flat rate can a sole trader claim for each business mile?
Cars and goods vehicles are claimed at 55p a mile for the first 10,000 miles (45p before 6 April 2026) and 25p after, and motorcycles at 24p.
What HMRC says
“first 10,000 miles”
“55p”
“45p”
“6 April 2026”
“after 10,000 miles”
“25p”
“Motorcycles”
“24p”
11,000 business miles are claimed as £5,750: 10,000 at 55p and 1,000 at 25p.
What HMRC says
“11,000”
“£5,750”
“10,000”
“55p”
“1,000”
“25p”
The rate covers the costs of buying, running and maintaining the vehicle, in place of its capital allowances.
What HMRC says
“The mileage rate covers the costs of buying, running and maintaining the vehicle”
“capital allowances”
Once a vehicle is claimed at the flat rates, it stays on them for as long as it is used in the business.
What HMRC says
“Once you use the flat rates for a vehicle, you must continue to do so as long as you use that vehicle for your business.”
Parking, tolls and congestion charges are claimed separately, as are public transport fares.
What HMRC says
“parking”
“tolls”
“congestion charges”
How does Bilbx apply this rule?
- Tax Lab claims the business miles you give for a return's year at 55p a mile for the first 10,000 miles and 25p a mile after, or 24p a mile on a motorcycle.
- Your Vehicle & Transport receipts then come out of the expenses claimed, listed as covered by the rate, with their VAT still claimable. Any you mark as parking or tolls stay claimed.
What does this look like in practice?
Bilbx's own tests run these exact cases against the website and the app.
| Tax year starting | Business miles | Tax Lab claims |
|---|---|---|
| 6 April 2026 | 10,000 miles at 55p a mile, then 1,000 at 25p a mile | £5,750 |
| 6 April 2026 | 10,000 miles at 55p a mile | £5,500 |
| 6 April 2025 | 10,000 miles at 45p a mile, then 1,000 at 25p a mile | £4,750 |
| 6 April 2026 | 12,000 miles at 24p a mile, on a motorcycle | £2,880 |
Where can you read more?
Self-employed mileage: what records does HMRC need?
Business travel, statement distance, logbooks and expense receipts: the vehicle records to keep in the UK before calculating a car claim.
ReadSelf Assessment allowable expenses: SA103 boxes 11 to 19 explained
Which receipts go into boxes 11 to 19 on your Self Assessment SA103 return, what HMRC disallows (like client entertaining), and the records to keep.
Read