Pricing and business
Business mileage at HMRC simplified rates
- where
- business miles for the job
- one-way distance (miles)
- number of visits
- miles paid at the higher rate
- higher-rate band (10,000 miles)
- business miles already claimed this tax year
- miles paid at the lower rate
- mileage allowance (£)
- rate for the first 10,000 miles (p/mile)
- rate after 10,000 miles (p/mile)
Explain this equation
Works out the round-trip business mileage for a job and what it is worth at HMRC’s simplified rates. Use it to price travel into a quote and to log your tax deduction.
Each visit is a round trip, so the job mileage M is twice the one-way distance d times the visits k. m0 is how far you have already claimed this tax year. M1 is the part of this job that still falls within the first 10,000 miles, paid at r1; anything past that is M2 at r2.
HMRC pays a higher rate for the first 10,000 business miles in each tax year and a lower rate after. The min and max split the job’s miles across that boundary. Dividing by 100 turns pence into pounds.
Sense check: four visits to a job 15 miles away is 120 miles, worth £66 at 55p. From 6 April 2026 the car and van rates are 55p and 25p.
Watch out: if you use simplified mileage for a vehicle you cannot also claim its fuel, insurance or repairs.
Works out the round-trip business mileage for a job and its value at HMRC’s simplified mileage rates, splitting miles either side of the 10,000-mile band.
Enter your values to see the result.
Good to know
From 6 April 2026 the HMRC approved rates for cars and vans are 55p per mile for the first 10,000 business miles in the tax year and 25p after that (previously 45p/25p). Sole traders using simplified expenses can claim these rates instead of actual vehicle costs, but once chosen for a vehicle you must keep using them for that vehicle. Keep a mileage log. Use this figure as a cost to recover in your price, as well as a tax deduction.
Common mistake
Claiming both the mileage rate and fuel, insurance or servicing for the same vehicle. The flat rate already covers running costs.
Limits
Cars and goods vehicles only; motorcycle and bicycle rates differ. Ordinary commuting to a permanent workplace is not business mileage. Check GOV.UK each tax year for rate changes.
Sources
Results are calculations from the published methods and manufacturer figures shown, and depend on the data you enter. Always follow the tile, adhesive and grout manufacturers’ instructions, BS 5385 and the Tile Association guidance. Coverage rates vary by product and substrate. Check prices and VAT rules with your own records and HMRC.