# Mileage, and the choice you make once

Canonical: https://taxmo.co.uk/mileage-tracking-uk
Last updated: 2026-04-25

There are two ways to claim vehicle costs, they are mutually exclusive for a given vehicle, and picking the wrong one quietly costs money every year.

## Flat rate per mile

HMRC publishes a rate per business mile that covers everything: fuel, insurance, servicing, depreciation. A lower rate applies after a threshold number of miles in the year. You keep a record of journeys and claim the rate. Simple, and usually better for a cheap car doing high mileage.

## Actual costs

The alternative is to claim the business proportion of what the vehicle really costs you, plus capital allowances on the vehicle itself. More paperwork, and usually better for an expensive car doing low mileage. Note that cars are excluded from the Annual Investment Allowance, so relief comes gradually through the writing down allowance.

## What a journey record needs

Date, purpose, and miles. Commuting to a permanent workplace is not business mileage, which is the distinction most claims get wrong. A trip from home to a client site usually is, but the rules on temporary workplaces have edges worth checking if it is a regular journey.

## Common questions

### Which method should I use?

Work out both for a typical year. High mileage in a modest car usually favours the flat rate; low mileage in an expensive car usually favours actual costs. Once you use the flat rate for a vehicle you generally continue with it for that vehicle, so the choice matters at the start.

### What is the current mileage rate?

HMRC sets it and it has been unchanged for a long period, but it is still a published rate that can move. Check the current figure and the mileage threshold where the lower rate kicks in on GOV.UK.

### Can I claim mileage to my office?

Not if it is your permanent workplace, which is ordinary commuting. Travel to a client or a temporary workplace generally is claimable. If you work from home and travel to clients, most of that travel is business mileage.

## Related pages

- [Track expenses without the shoebox](https://taxmo.co.uk/expenses-tracker-uk)
- [Accounting software for UK sole traders](https://taxmo.co.uk/accounting-software-sole-traders)
- [Self Assessment without the January reconstruction](https://taxmo.co.uk/self-assessment-software)

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This page explains how UK rules work rather than quoting thresholds, rates or allowances, which are indexed or reset at fiscal events. Check current amounts on GOV.UK.