The short answer
Sole traders and unincorporated property businesses can use HMRC simplified mileage rates instead of claiming the actual cost of buying and running an eligible vehicle. For 2026/27, cars and goods vehicles are 55p per business mile for the first 10,000 miles and 25p after that; motorcycles are 24p per mile. Keep an accurate journey log, then use SimpleTaxFlow to calculate and record the expense in the correct tax year and filing period.
Why business mileage records matter for MTD
Making Tax Digital for Income Tax requires people in scope to create and keep digital records of relevant self-employment and property income and expenses. Each digital expense record needs an amount, date and category, and the records must be created before the relevant quarterly update is sent or becomes due.
A quarterly update sends category totals rather than every journey to HMRC. Your mileage log still matters because it supports how the travel expense was calculated. HMRC says businesses using the flat-rate method should keep records of their business miles, and its manuals describe a contemporaneous mileage record as important evidence for the claim.
HMRC simplified mileage rates for 2026/27
The higher rate for cars and goods vehicles increased retrospectively from 45p to 55p from 6 April 2026. The rate drops to 25p after the first 10,000 business miles in the tax year. Motorcycles remain at 24p per business mile.
For example, 11,000 eligible car or van miles in 2026/27 produces a £5,750 deduction: 10,000 × 55p, plus 1,000 × 25p. A journey dated before 6 April 2026 uses the earlier 45p higher rate. SimpleTaxFlow uses the journey date and recalculates journeys in date order so earlier backfilled mileage can move later journeys into the lower band.
- Cars and goods vehicles: 55p for the first 10,000 business miles in 2026/27
- Cars and goods vehicles: 25p for every business mile above 10,000
- Motorcycles: 24p per business mile
- Before 6 April 2026: the first 10,000 car or van miles use 45p
Which journeys and costs can you claim?
A journey must be wholly and exclusively for the business. Travel to a client, supplier, temporary workplace or property-business appointment can qualify when it is genuinely for business. Private travel and ordinary travel between home and a permanent workplace do not qualify. A mixed-purpose journey is not automatically fully allowable.
The mileage rate already covers owning and running the vehicle, including fuel, servicing, repairs, insurance, vehicle tax, MOT and depreciation. Do not also claim those actual costs for the same vehicle. Business parking, tolls and congestion charges are not included in the mileage rate and may be recorded separately when they are allowable. Fines are not allowable.
Check that simplified mileage is the right method
The flat-rate method is optional. It is available to sole traders, qualifying partnerships and qualifying unincorporated property businesses, but not limited companies. You cannot use it for a vehicle if you have already claimed capital allowances for that vehicle or treated its purchase as a business expense.
Once you start using flat rates for a vehicle, HMRC says you must continue with that method for as long as you use the vehicle in the business. Compare simplified mileage with the actual-cost method before you commit, and ask an accountant or HMRC if the vehicle has an existing tax history or the journey has both business and private purposes.
1. Open Mileage and choose the right entry method
Open the standalone Mileage workspace and select the correct tax year. Choose Add journey for one trip. Choose Add past mileage when you are bringing an accurate existing log, repeated travel pattern, or several weeks or months of dated journeys into SimpleTaxFlow.
Open mileage log2. Record one journey with enough business detail
Enter the journey date, business miles, vehicle and a specific purpose such as “visit client at project site”. Assign it to the correct sole-trader business, property business or project. Review the calculated amount before saving; a vague label such as “travel” is harder to support later.
Open mileage log3. Backfill accurate past mileage without retyping it
For regular travel, set the date range, weekdays and miles, then remove holidays, cancelled visits and personal journeys from the preview. Import dated CSV rows when you already have a spreadsheet, or use the quick table for several different journeys. Backfill from records, diary entries or other reliable evidence—not a rough estimate.
Open mileage log4. Use a summary only when you retain the detailed log
A date-range summary is for mileage already supported by a paper log, spreadsheet or another app. Enter the total, journey count and source, and keep the dated underlying detail. Do not convert an estimate into a mileage record. Split summaries at quarterly boundaries and at 5 April so each amount reaches the correct period and tax year.
Open mileage log5. Use WhatsApp for a journey when it is convenient
WhatsApp is optional. Send a message such as “32 miles to client site” without adding a pound amount. SimpleTaxFlow interprets the miles as a car or van journey unless you say motorcycle, applies the rate for the journey date, and replies with the calculation. Then review the entry in Mileage or Activity and correct any missing context.
See the WhatsApp reference6. Review the claim before the quarterly update
Check the date, purpose, allocation, vehicle, year-to-date miles and rate breakdown. Backfilled journeys stay together as a manageable group with the dated records inside. The calculated travel expenses feed Activity, your tax estimate and the relevant quarterly totals. Accepted submissions and accountant-locked periods are protected from silent changes.
Prepare the quarterBefore you move on
- Simplified mileage is available for the business and has been chosen consistently for this vehicle
- The journey date, business miles, vehicle and specific purpose are correct
- The journey is assigned to the correct business, property or project
- The calculated rate, claim and year-to-date mileage look right
- Only wholly business journeys are claimed; private travel and ordinary commuting are excluded
- Generated dates exclude holidays, cancellations and personal travel
- Any summary is supported by a retained dated journey log
- Fuel and other running costs covered by the mileage rate have not also been claimed
Frequently asked questions
Does MTD require me to keep a mileage log?
If you use simplified mileage, HMRC expects records of your business miles to support the expense. For MTD, the resulting expense record must include the amount, date and category. Quarterly updates send category totals, not a list of every journey, but you should retain the journey detail behind the calculation.
Can I claim mileage from home to work?
Ordinary travel between home and a permanent workplace is not allowable. A journey from home to a client, temporary workplace or property-business appointment may qualify when it is wholly for business, but travel rules depend on the facts.
Can I claim fuel as well as the mileage rate?
No. The flat mileage rate already covers fuel and the normal costs of owning, running and maintaining the vehicle. Allowable business parking, tolls and congestion charges can be separate because they are not included in the rate.
What happens when I pass 10,000 miles?
For a car or goods vehicle, only the first 10,000 business miles in the tax year use the higher rate. Later miles use 25p. SimpleTaxFlow tracks the year-to-date total and recalculates the sequence if you add or correct an earlier journey.
Do I have to use WhatsApp to record mileage?
No. The Mileage workspace is the main place to add, import, backfill and review journeys. WhatsApp is an optional shortcut for recording a straightforward journey by message.
How long should I keep my mileage records?
HMRC says MTD digital records must be kept for at least five years after the 31 January submission deadline for the relevant tax year. Keep the underlying journey log and related evidence with those records.
Check the official rules
Tax rules can change and individual circumstances matter. Use HMRC’s current guidance to confirm the treatment that applies to you.
Put the guide into practice.
Open the relevant workspace and complete the next step with this guide available in another tab.
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