Your estimate shows here.Enter your business miles and press Compare. After that, results update as you change any number.
Updates as you type
Best option (estimate)
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Simplified mileageHigher
Actual costsHigher
Workings: simplified mileage
Estimates only. Not financial, tax, or legal advice. Eligibility rules can affect which method you can use. Check GOV.UK for full conditions.
How it works
Simplified mileage
| Vehicle | 2026/27 | 2025/26 |
|---|---|---|
| Car or van, first 10,000 business miles | 55p | 45p |
| Car or van, each mile over 10,000 | 25p | 25p |
| Motorcycle, every business mile | 24p | 24p |
- Car/van: first 10,000 business miles at 55p in 2026/27 (45p up to 2025/26), then 25p after.
- Motorcycle: 24p per business mile.
- The flat rate covers running costs such as fuel, insurance, servicing and road tax. Parking and tolls on business journeys can be claimed on top.
Actual costs (rough comparison)
allowable = annual running costs × (business use % / 100)- With actual costs you claim the business share of what you really spent, and you can also claim capital allowances on the vehicle itself, which this comparison leaves out.
Who can use simplified mileage
- Sole traders and business partnerships with no company partners. Limited companies can’t use simplified expenses.
- You can’t use it for a vehicle you’ve already claimed capital allowances on, or included as an expense when working out your profits.
- Once you use the flat rate for a vehicle, you must keep using it for as long as you use that vehicle for your business.
Because you can’t switch back, it’s worth comparing both methods before your first claim for a new vehicle, not after.