Tax year 2026–27 · GBP · miles
Car logbook rules and business car tax in United Kingdom
What a car logbook needs to contain
Under the rules recorded for United Kingdom, each trip entry should show:
- Date
- Start location
- Destination
- Purpose
- Business miles
Keep your records for 5 years.
- Keep a record of business miles across the tax year to apply the flat rates.
- Self-employed records: at least 5 years after the 31 January Self Assessment deadline (GOV.UK: self-employed records).
Ways to claim and current rates
Simplified expenses (flat rate per mile)
Sole traders and partnerships with no company partners: business miles × flat rate instead of actual costs. Once used for a vehicle you must keep using it for that vehicle. Not for vehicles you have claimed capital allowances on. Parking and tolls can be claimed on top.
| Vehicle | Rate | Status | Applies |
|---|---|---|---|
| Car or goods vehicle | £0.550/mi up to 10,000 mi, £0.250/mi after that | Confirmed | 2026-04-06 – 2027-04-05 |
| Motorcycle | £0.240/mi | Confirmed | 2011-04-06 – 2027-04-05 |
Approved mileage allowance payments (employees)
Employees using their own car: employers can pay up to this tax-free; if they pay less, claim Mileage Allowance Relief on the difference.
| Vehicle | Rate | Status | Applies |
|---|---|---|---|
| Car or van | £0.550/mi up to 10,000 mi, £0.250/mi after that | Confirmed | 2026-04-06 – 2027-04-05 |
| Motorcycle | £0.240/mi | Confirmed | 2011-04-06 – 2027-04-05 |
Actual costs (business share)
Business-use % of actual running costs plus capital allowances on the business share.
Worked example (estimate)
Say you drove 5,000 mi for work in a year, your car costs came to £8,000 and your logbook shows 60% business use. With the figures on this page the estimates are:
- Simplified expenses (flat rate per mile) (Car or goods vehicle)£2,750.00
- Approved mileage allowance payments (employees) (Car or van)£2,750.00
- Actual costs (business share) (60% of £8,000)£4,800.00
These are estimates only. A real claim depends on your situation and on conditions this example does not check.
Fuel schemes
Red diesel (rebated gas oil)
Agriculture, horticulture, fish farming and forestry can still use red diesel in tractors and off-road machinery; most other businesses lost the entitlement in April 2022. It is never allowed in road vehicles except permitted ones (e.g. tractors). The saving shown is the duty difference per litre against road diesel.
Who: Farmers, growers, foresters and fish farmers using it in permitted machinery · Claimed: No claim: bought at the rebated rate from a registered dealer; keep records showing permitted use (year) Confirmed
Other driving-related savings
Commuting Confirmed
Ordinary commuting between home and a permanent workplace is not deductible and not covered by mileage rates.
Parking, tolls and congestion charges on business journeys Confirmed
Self-employed people using the flat rate per mile can usually still claim parking, tolls and congestion charges for business journeys on top (not parking fines). Enter them as costs to include them.
Mileage Allowance Relief (employees) Confirmed
If your employer pays less than the approved mileage rate for business journeys in your own car, you can claim tax relief on the difference from HMRC.
Electric company cars: low benefit-in-kind Confirmed
A fully electric company car is taxed on 4% of its list price in 2026–27 and 5% in 2027–28 (petrol/diesel up to 37%). Figures from GOV.UK.
Electric Vehicle Excise Duty (from April 2028) Confirmed
From 1 April 2028 battery-electric and hydrogen cars pay 3p per mile and plug-in hybrids 1.5p per mile, rising with CPI (GOV.UK policy paper, 13 July 2026). Not yet in force; no effect on 2026–27 claims.
Questions
Which ways of claiming a car does United Kingdom allow?
Simplified expenses (flat rate per mile), Approved mileage allowance payments (employees) and Actual costs (business share). The table above shows the rates for each.
How long do I need to log trips?
Keep your records for 5 years.
Is the calculator result what I can claim?
No. It is an estimate based on the rates on this page and the numbers you enter. The tax authority decides what is allowed.
Where does Clocked keep my trips?
On your phone. You can export them as a file for your accountant.
How Clocked handles this
Clocked records your trips, works out your business percentage and compares the ways of claiming that United Kingdom allows, using the same rules shown on this page. It makes an export for your accountant. It does not file anything for you.
Sources
Main authority and source: GOV.UK simplified expenses: vehicles
- GOV.UK simplified expenses: vehicles
- GOV.UK AMAP and simplified mileage rate increase
- ICAEW: approved mileage rate increased
Other countries: /clocked/tax/au/ · /clocked/tax/nz/ · /clocked/tax/ie/ · /clocked/tax/ca/ · Car tax by country
Let Clocked keep the logbook
Clocked records your trips and compares the ways you can claim in United Kingdom, then exports a logbook your accountant can work with.