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Mileage: HMRC Rate vs Actual Cost Calculator
Sole traders can claim business mileage two ways — HMRC's flat rate per mile, or a share of what the vehicle actually costs to run. You can't mix the two for the same vehicle, so it's worth knowing which one wins before you commit. Work it out here in under a minute.
Enter your figures above to see which method claims more.
Who this is for
Sole traders and self-employed people who use a personal car or van for business journeys and need to decide how to claim the cost — tradespeople, mobile workers, consultants, anyone who drives to jobs or client sites. Everything here runs in your browser; nothing you type is uploaded, saved or sent anywhere. If you've already decided the simplified mileage rate is right for you, use the Business Mileage Claim Calculator to total up your annual claim and see what it saves in tax.
Can I switch between the HMRC rate and actual costs?
Generally, no — not for the same vehicle. Once you choose the simplified mileage rate for a particular vehicle, HMRC expects you to stick with it for that vehicle for as long as you use it in the business. Switching methods partway (or claiming actual costs one year and simplified the next for the same vehicle) isn't normally allowed. Choose carefully at the start, and if you're unsure, check with HMRC or your accountant before you file.
What counts as an actual running cost?
Fuel, insurance, road tax, servicing, repairs, MOT, breakdown cover and a depreciation (capital allowance) element are the typical components. You then apply your business-use percentage — the share of your total mileage that was for business rather than personal journeys — to get the deductible amount.
Why is the HMRC rate simpler?
Because you only need to log business miles, not keep every fuel receipt, invoice and repair bill. It also builds in wear and tear, so there's no separate depreciation calculation. It tends to suit lower-mileage, lower-cost vehicles better, while the actual-cost method can work out higher for an expensive-to-run vehicle doing high business mileage.
Do the HMRC mileage rates change?
Yes — the cars/vans rate rose from 45p to 55p per mile (first 10,000 miles) from 6 April 2026, the first increase since 2011/12; the 25p rate above 10,000 miles is unchanged. The 55p / 25p figures used here (2026/27) should always be double-checked against the current published rates on gov.uk before you rely on them for a tax return.
Is this calculator giving me tax advice?
No. It's a general comparison tool to help you see which method looks better on the numbers you enter. It doesn't account for every rule (like the vehicle type restrictions on simplified expenses, or how capital allowances interact with actual costs) — verify your specific situation with HMRC or your accountant before you commit to a method.
Please note: this tool gives a guide or estimate only. It may not be 100% accurate and is not professional advice — always check the figures before you rely on them. Rates, thresholds, allowances and rules can change without notice and may be out of date by the time you use this tool. Verify against HMRC / GOV.UK or your accountant before acting. HMRC mileage rates can change — always check the current rates on gov.uk before relying on a figure, and confirm which claiming method suits your vehicle with HMRC or your accountant before you commit, since you generally can't switch methods for the same vehicle. This is general guidance, not tax advice.
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