HMRC Mileage Rates 2026/27

Current mileage rates for 2026/27

What is the bicycle mileage rate?

HMRC’s employee approved mileage allowance table includes bicycles at 20p per business mile. However, HMRC’s self-employed simplified vehicle-expense scheme lists cars, goods vehicles and motorcycles—not bicycles.

A self-employed delivery rider should not automatically use the employee 20p bicycle rate as a sole-trader expense. Bicycle or e-bike costs may instead be considered under actual expense or capital allowance rules, with personal use excluded. Check the classification of an e-bike and ask an adviser when the treatment is unclear.

Example mileage calculations

Car or van: 8,000 eligible business miles

8,000 × 55p = £4,400 simplified vehicle expense.

Car or van: 12,000 eligible business miles

(10,000 × 55p) + (2,000 × 25p) = £5,500 + £500 = £6,000.

Motorcycle: 5,000 eligible business miles

5,000 × 24p = £1,200.

These examples show the arithmetic only. The miles must still qualify as business travel and the vehicle must be eligible for the simplified method.

Self-employed mileage versus employee mileage

“HMRC mileage rate” can describe two different systems. Sole traders can use simplified vehicle expenses when eligible. Employers use approved mileage allowance payments when an employee uses their own vehicle for business travel.

The numerical rates overlap for 2026/27, but the legal context, eligibility and reporting are different. Most app-based delivery drivers reading this guide will be considering self-employed simplified expenses, not an employer reimbursement.

Mileage versus actual vehicle costs

Simplified mileage replaces the costs of buying and running the eligible vehicle, including fuel, insurance, repairs and servicing. Parking and other travel costs can be separate where allowable.

You cannot use simplified expenses for a vehicle if you have already claimed capital allowances for it or included it as an expense when calculating profits. Once you use the flat rate for a vehicle, HMRC says you must continue while that vehicle is used in the business.

Compare the methods before choosing. Read the delivery driver expenses guide for supporting records.

What counts as business mileage?

The journey must be for the trade. Non-business driving and travel between home and a regular place of work are not allowable. Travel from a home base to changing temporary work sites can be treated differently for an itinerant business, but the facts matter.

For delivery work, keep the purpose of depot, collection, delivery, repositioning and return journeys. Do not assume all movement while logged into an app qualifies, or that all home-to-depot mileage fails. Amazon Flex and other depot patterns can require a fact-specific assessment.

Mileage records to keep

• Date, vehicle, journey purpose and business miles.
• Start and end points or enough route detail to understand the work.
• Odometer readings or GPS evidence where available.
• Personal detours and reasons for manual corrections.
• A running annual total so the 10,000-mile threshold is applied correctly.

TaxBuddie’s delivery mileage tracker supports GPS, odometer and manual records. Recording a mile does not determine its tax treatment.

Official sources

• Simplified expenses for vehicles — GOV.UK
• Employee business mileage rates — GOV.UK
• Self-employed vehicle and travel expenses — GOV.UK
• HMRC manual: travel to and between sites — GOV.UK