HMRC Mileage Rates 2026 Explained for Drivers and Small Businesses
If you use your own car for business, understanding HMRC mileage rates is essential. The mileage allowance system can be simpler than claiming actual vehicle expenses, but only if you keep accurate records.
Who Uses HMRC Mileage Rates?
Mileage rates are most relevant for employees using their own car for work, sole traders, directors, and small business owners.
Why Good Records Matter
To claim correctly, you need a clear mileage log showing the date, purpose of trip, start and end points, and miles travelled.
This is where CarFile can help with expense tracking and ongoing vehicle record-keeping.
Mileage Rates vs Actual Expenses
For some drivers, mileage rates are simpler and more efficient. For others, actual expenses may be worth comparing.
Before deciding, work out your cost per mile and compare it with your likely reimbursement.
Related Guides
If you are deciding between reimbursement and a business-owned vehicle, read our guide on company car vs mileage allowance.
Summary
HMRC mileage rates can make business mileage simpler, but only with reliable records. Use CarFile to track trips and costs, calculate your cost per mile, and choose the reimbursement method that makes sense.