How to track mileage for HMRC as a sole trader tradesperson

If you drive to jobs, you can claim mileage. HMRC allows a fixed amount per mile. For most tradespeople this is worth thousands per year and most are not claiming it properly.

HMRC mileage rates 2025/26

• Cars and vans: first 10,000 miles at 45p per mile, then 25p above 10,000.
• Motorcycles: 24p per mile flat rate.
• Bicycles: 20p per mile flat rate.

These rates are designed to cover fuel, insurance, and wear and tear. You claim the rate; you do not need to submit fuel receipts for that method. You also cannot mix simplified mileage rates with actual vehicle costs for the same vehicle at the same time.

What counts as business travel

Claimable business travel usually includes job site to job site journeys, home to temporary workplaces such as customer properties, collecting materials, accountant visits, and training travel related to your business.

Normal commuting is not claimable: for example, home to a permanent regular workplace. For many sole trader tradespeople, each customer address is temporary so those journeys are claimable. If you operate from a regular workshop or depot, home to that fixed base is usually commuting.

How much this is worth

Worked example for a plumber driving 200 business miles per week:

• 10,400 miles per year total.
• First 10,000 miles x £0.45 = £4,500.
• Remaining 400 miles x £0.25 = £100.
• Total mileage claim = £4,600.

At a 20% income tax rate, that can mean about £920 less income tax plus roughly £414 less National Insurance, around £1,334 less tax for the year.

For the bigger invoicing workflow around this, read our best invoicing app for plumbers guide. For related allowable costs, see our sole trader expenses guide.

What HMRC requires

Keep records that show the date, from and to locations, purpose of the trip, miles driven, and a running total. HMRC expects contemporaneous records, which means logged at the time rather than reconstructed months later. There is no mandated format, but your journeys should look reasonable against your invoices and jobs.

How Billdr handles mileage

Enter from, to, and miles after each journey. Billdr applies HMRC rates automatically, keeps a running total, and includes mileage in your accountant pack. The figures feed your dashboard tax estimate so there are fewer surprises.

• Log on the same day.
• Round trips are both claimable if both legs are business.
• Passengers do not increase the claim rate.
• Keep records for at least 5 years.

Mileage claims alone often pay for software many times over. Start your free trial at billdr.co.uk/signup.