Mileage allowance for tradesmen: what you can claim for your van

If you are self-employed and drive your van to jobs, you can claim for it in one of two ways. Pick the flat rate per mile, or work out your actual costs. For 2026 to 2027 the flat rate is 55p a mile for the first 10,000 business miles, then 25p. This is general information, not tax advice, so check with your accountant before you choose.

The two ways to claim

1. Flat rate per mile (simplified expenses). You count your business miles for the year and multiply by the rate. You do not claim fuel, insurance, repairs or servicing separately, because the rate replaces them.

2. Actual costs. You add up what the vehicle really cost to buy and run, then claim the business share.

GOV.UK says the flat rate is for cars, vans and motorcycles, and sole traders and partnerships with no companies as partners can use it. Limited companies cannot.

The 2026 to 2027 flat rates

Before 6 April 2026 the rate for the first 10,000 miles was 45p. If you saw "45p per mile" on an older page, that is the old figure. The 25p rate after 10,000 miles and the 24p motorcycle rate did not change.

You cannot use the flat rate for a vehicle you have already claimed capital allowances on, or one you have already put through your business profits as an expense.

What counts as a business journey

GOV.UK lists travel between home and work as something you cannot claim. It also excludes non-business driving and fines or penalty charges. The travel page does not define a business journey beyond that, and it does not say how a regular base should be treated for a tradesperson.

So we will not guess. If you drive from home to a site, or you work from a regular base, ask your accountant or HMRC how it applies to you. Meanwhile, log every trip with a clear reason (see the log below) so the answer is easy to work out later.

What you can claim on top

The flat rate covers insurance, repairs, servicing and fuel. GOV.UK says you can still claim other travel expenses, such as train journeys, and parking, on top of the vehicle claim.

Travel is also a real cost in your pricing. Put your miles and journey time into the day rate calculator so a far-off job is priced properly.

Worked example: a floor fitter

Say a floor fitter drives 14,000 business miles in 2026 to 2027 in one van, and paid £120 in car park charges on city jobs.

1. First 10,000 miles: 10,000 x £0.55 = £5,500
2. Remaining miles: 14,000 - 10,000 = 4,000
3. Remaining 4,000 x £0.25 = £1,000
4. Flat rate claim: £5,500 + £1,000 = £6,500
5. Add parking, claimed on top: £6,500 + £120 = £6,620

The rate drops to 25p after 10,000 miles, so the last 4,000 miles are claimed at the lower rate. These are example figures, not a promise of what you will claim.

A simple mileage log

HMRC wants you to keep records of your business miles over the year. A table like this is enough. Fill it in the same day, on your phone if that is easiest.

Add up the miles at the end of the year, multiply by the rates above, and enter the total on your Self Assessment return. Pair it with your job sheets so each trip matches a job.

How long to keep it

GOV.UK says to keep your records for at least 5 years after the 31 January submission deadline of the relevant tax year. For 2026 to 2027, that means until at least the end of January 2033.

If you are PAYE or run a limited company

Different rules apply. Simplified expenses are not open to limited companies. If an employer pays you for using your own vehicle on business, the scheme is called Mileage Allowance Payments (MAPs). GOV.UK shows the approved amounts as 55p a mile for cars and vans up to 10,000 miles (from 6 April 2026), 25p above that, and 24p for motorcycles. Read the full rules on GOV.UK and ask your accountant how it applies to you, especially if you are a director of your own company.