What mileage rate can a sole trader claim for a van in 2026/27?

Using simplified expenses, cars and goods vehicles (vans) claim 55p for the first 10,000 business miles then 25p. Motorcycles claim 24p. Limited companies cannot use simplified expenses.

How is the tax saving estimated?

The mileage claim reduces taxable profit. Multiplying that claim by your marginal Income Tax rate (20%, 40% or 45% for England, Wales and Northern Ireland) gives a simple estimate of tax saved. It does not include National Insurance or Scottish rates.

MileRate Sole traders

See what your van or car miles are worth as a sole trader

Use the 2026/27 simplified expenses rates, then estimate Income Tax saved at basic, higher or additional rate. Built for freelancers and tradespeople who keep a mileage log.

Your business miles

Tax year Vehicle Business miles this year Only wholly business journeys. Ordinary home-to-base travel does not count. Your marginal Income Tax rate England, Wales and Northern Ireland bands for 2026/27. Scottish rates differ.

Compare with actual costs

Rates used

Sole traders and eligible partnerships can claim simplified expenses for vans, cars and motorcycles. For 2026/27: 55p for the first 10,000 car or van miles, then 25p; motorcycles 24p. Once you use the flat rate for a vehicle, keep using it for that vehicle.

Sources: simplified expenses for vehicles, Income Tax rates.

Quick answers

Can a limited company use this?

No. Simplified expenses are for sole traders and partnerships without a company partner. Company directors using their own car usually claim approved mileage or Mileage Allowance Relief instead.

Does this include Class 4 National Insurance?

No. The estimate is Income Tax only. Lower taxable profit can also reduce Class 4 NI, but that depends on your profit band.