2025/26 HMRC Mileage Rates (Unchanged)
Cars & Vans
45p/25p per mile
Motorcycles
24p per mile
Bicycles
20p per mile
HMRC Mileage Rates Frozen for 14th Consecutive Year
Despite rising fuel costs and vehicle maintenance expenses, HMRC has kept mileage allowance rates unchanged for the 2025/26 tax year. The rates remain at 45p per mile for the first 10,000 business miles and 25p per mile thereafter for cars and vans.
Rate Freeze Impact
These rates last increased in 2011 (from 40p to 45p). With 14 years of inflation and rising vehicle costs, the real value of mileage allowances has significantly decreased.
Complete HMRC Mileage Rate Breakdown
| Vehicle Type | First 10,000 Miles | Above 10,000 Miles | Passengers |
|---|---|---|---|
| 5p per mile each | |||
| Motorcycles | 24p per mile | 24p per mile | Not applicable |
| Bicycles | 20p per mile | 20p per mile | Not applicable |
What Business Journeys Qualify for UK Resellers?
For self-employed resellers, HMRC allows mileage claims for journeys that are “wholly and exclusively” for business purposes:
Qualifying Business Journeys
- • Sourcing trips: Charity shops, car boot sales, wholesalers
- • Collection drives: Picking up items from sellers
- • Post office runs: Shipping sold items
- • Delivery journeys: Hand-delivering to local buyers
- • Business meetings: Accountant, supplier meetings
- • Market stalls: Traveling to selling venues
- • Storage facility visits: Accessing business storage
Non-Qualifying Journeys
- • Regular commuting: Home to normal workplace
- • Personal shopping: Buying items for personal use
- • Social visits: Meeting friends/family
- • Leisure activities: Non-business related travel
- • Combined trips: Mixed personal/business (unless business portion clearly separable)
Mileage Calculation Examples
Example 1: Part-time Reseller (5,000 annual business miles)
Example 2: Active Reseller (15,000 annual business miles)
Example 3: With Business Passengers (12,000 miles + colleague)
Record Keeping Requirements
HMRC requires detailed records for all mileage claims. Poor record keeping can result in claims being rejected and penalties applied:
Essential Mileage Records:
- Date of each business journey
- Start and end locations (specific addresses)
- Business purpose of the trip
- Mileage for each journey
- Total business mileage for the tax year
- Vehicle details (registration, make, model)
Who Can Claim HMRC Mileage Allowances?
Self-Employed Resellers:
- Registered as self-employed with HMRC
- Trading profits over £1,000 annually
- Use own vehicle for business purposes
- Claim through Self Assessment tax return
Employee Resellers:
- Employed but do reselling as side business
- Can claim if employer doesn't reimburse
- Use form P87 for simple claims
- Include in Self Assessment if required
Alternative: Actual Cost Method
Instead of using HMRC's mileage rates, you can claim actual vehicle costs:
Actual Costs Include:
- Fuel costs
- Insurance premiums
- Vehicle repairs and servicing
- MOT and breakdown cover
- Vehicle depreciation
- Road tax (VED)
- Parking fees (business only)
- Finance costs (if applicable)
Note: You must apportion costs between business and private use. Most resellers find the mileage rate method simpler and more beneficial.
Common HMRC Mileage Claim Mistakes
Claiming Personal Mileage
Including non-business journeys in mileage claims. HMRC can request detailed journey logs and impose penalties for false claims.
Poor Record Keeping
Failing to maintain contemporaneous records. Claims made months later without proper documentation are often rejected.
Double Claiming
Claiming both mileage allowance and actual costs for the same vehicle. You must choose one method per vehicle per tax year.
Excessive Claims
Claims that seem unreasonably high compared to business turnover may trigger HMRC enquiries.
Tax Year 2025/26 Key Dates
Important Deadlines:
- Tax year: 6 April 2025 - 5 April 2026
- Self Assessment deadline: 31 January 2027
- Record retention: Until 31 January 2032
Planning Tips:
- Start tracking mileage from 6 April 2025
- Review and optimize business journey efficiency
- Consider quarterly mileage summaries
Maximizing Your Mileage Claims
Pro Tips for UK Resellers:
- Plan efficient routes: Combine multiple business stops in one journey
- Document everything: Use mileage tracking apps or maintain detailed logbooks
- Separate vehicles: If possible, dedicate one vehicle primarily to business use
- Claim passenger payments: When traveling with business colleagues
- Consider vehicle choice: Fuel-efficient vehicles reduce actual costs vs. mileage rate benefit
- Regular reviews: Quarterly assessment of mileage vs. actual cost methods
HMRC mileage rates and regulations are subject to change. This guide reflects the position for the 2025/26 tax year. Always consult current HMRC guidance or seek professional advice for complex situations.