If you use your own vehicle for business journeys, HMRC publishes a flat rate for each business mile. For the 2026 to 2027 tax year the rate for cars and vans is 55p a mile for the first 10,000 business miles, up from 45p in 2025 to 2026, and 25p a mile after that.
The rates
| Vehicle | 2025 to 2026 | 2026 to 2027 |
|---|---|---|
| Cars and vans, first 10,000 business miles | 45p | 55p |
| Cars and vans, each mile after that | 25p | 25p |
| Motorcycles | 24p | 24p |
| Bicycles | 20p | 20p |
These are HMRC’s approved mileage allowance payments. For the self-employed, the same per-mile rates for cars, vans and motorcycles are the flat rates of simplified expenses. The simplified expenses table has no row for bicycles: the bicycle rate is the one HMRC sets for employees who cycle for work.
The 10,000-mile threshold
The higher rate covers the first 10,000 business miles you drive by car or van in a tax year, from 6 April to 5 April. Every business mile after that is paid at the lower rate. Motorcycles and bicycles have one rate whatever the distance, and their miles do not count towards the car and van threshold.
What counts as a business mile
Business journeys are the ones your work takes you on: to a client, a supplier or a site. Gov.uk lists what you cannot claim: non-business driving or travel, fines and penalty charges, and travel between home and work.
With the flat rate, the per-mile figure covers the cost of running the vehicle. You can still claim other travel costs, such as train fares and parking, on top.
Keeping a mileage log
For each business journey, note the date, where you went and why, and the business miles. A log kept as you go is far easier to rely on than one rebuilt at the end of the year.
The PencePal mileage tracker prices each trip at the rate for its own tax year, splits a trip that crosses the 10,000-mile line, and keeps the allowance apart from your expenses on every PDF.