Can a sole trader claim mileage and vehicle costs in the UK?

Understanding mileage and vehicle costs for UK sole traders

If you’re a UK sole trader who uses a car, van, motorcycle, or bicycle for work, you can usually claim a tax-deductible expense for that business travel. The big question is how you claim it. In the UK, you generally have two main routes: you can claim mileage using simplified expenses (a flat rate per business mile), or you can claim a proportion of actual vehicle running costs based on business use. Choosing the best method can reduce your tax bill, improve your cash flow, and make your bookkeeping far less stressful.

This is where good record-keeping matters. You don’t need complicated spreadsheets or a shoebox full of receipts to do it properly. If you use a simple invoicing and admin tool like invoice24, you can keep your billing organised and your business activity clear, which makes it much easier to separate business and personal costs and stay confident at tax time.

Can a sole trader claim mileage and vehicle costs in the UK?

Yes—most sole traders can claim for the cost of business travel in the UK, provided the travel is wholly and exclusively for business purposes. You can’t claim for ordinary commuting (for example, driving from home to a regular workplace), but you can usually claim for business journeys such as:

• Visiting clients or customers

• Travelling to a temporary work location

• Going to buy business supplies

• Attending business meetings or training that is relevant to your work

• Travelling between different work sites in the same day

The amount you can claim depends on the method you use. Importantly, you normally choose either mileage (simplified expenses) or actual costs for a particular vehicle, and once you’ve chosen a method for that vehicle, you typically stick with it. The “right” choice depends on how many business miles you drive, your vehicle’s running costs, and how much admin you want to take on.

The two main methods: simplified mileage vs actual costs

For sole traders, vehicle expenses are usually claimed in one of two ways:

1) Simplified expenses (mileage method)

This method lets you claim a fixed rate per business mile. You track your business mileage and multiply it by the applicable rate. It’s popular because it’s straightforward and doesn’t require you to split every fuel or maintenance bill between business and personal use.

Simplified mileage tends to work well if:

• You want minimal admin

• Your vehicle is inexpensive to run

• You drive a lot of business miles and want predictable calculations

2) Actual vehicle running costs (proportion of real costs)

This method involves claiming a business-use percentage of your actual costs. That might include fuel, insurance, servicing, repairs, vehicle tax, MOTs, breakdown cover, parking, and other running costs. You need records and a sensible way to calculate what portion is for business.

Actual costs can be beneficial if:

• Your vehicle is costly to run (fuel, repairs, finance interest, etc.)

• You don’t do many business miles but your running costs are high

• You can keep good records and you want the most accurate claim

What counts as business mileage?

Understanding what qualifies as business mileage is crucial. A journey is normally business travel when it is necessary for your work and not simply commuting. Common examples include driving to a customer’s premises, travelling to a one-off site for a job, or going between multiple client locations.

Commuting is usually not allowable. If you leave your home and drive to your regular place of work, that’s typically considered private travel even if you do business tasks once you arrive. However, if your home is your main place of business and you travel out to clients, those journeys are often business mileage.

When in doubt, focus on the reason for the trip. If the purpose of the journey is to perform your trade, it’s more likely to be business mileage. If the purpose is to get yourself to a permanent workplace, it’s more likely to be commuting.

Claiming mileage: how it works in practice

With the mileage method, you only need to track business miles. You should keep a basic log that records:

• Date of the trip

• Start and end locations (or a brief description)

• Purpose of the journey (e.g., “Client meeting”)

• Number of miles travelled

Over the year, your claim becomes: total business miles × mileage rate.

This is one of the reasons many sole traders love mileage claims: it’s consistent, easy to explain, and doesn’t require you to store every single petrol receipt. You still need to keep records of the mileage itself, but it’s far less paperwork than actual-cost accounting.

Claiming actual costs: what expenses can be included?

If you choose actual costs, you’ll claim the business-use proportion of your vehicle’s running expenses. Costs often considered include:

• Fuel

• Servicing and repairs

• MOT and general maintenance

• Insurance

• Vehicle Excise Duty (road tax)

• Breakdown cover

• Parking (when business-related)

• Tolls and congestion charges (when business-related)

• Interest on a vehicle loan (business-use proportion, where applicable)

You’ll typically calculate a business-use percentage based on mileage: business miles ÷ total miles for the period. Then you apply that percentage to your running costs to arrive at the allowable amount.

This method can be more accurate, but it demands better record-keeping: fuel receipts, insurance documents, maintenance invoices, and a log of business and total miles.

Can you claim both mileage and actual vehicle costs?

For the same vehicle, you normally pick one method and use it consistently. Claiming mileage is designed to cover the running costs of using your vehicle for business, so you generally wouldn’t also claim the same running costs separately on top for that vehicle.

That said, even with mileage you may still be able to claim certain travel-related costs that aren’t “running costs” in the same way, such as business parking fees, tolls, or congestion charges when they’re directly tied to business travel. The key is not to double claim the same thing.

What about buying a vehicle: can a sole trader claim the purchase cost?

Buying a vehicle is different from paying for fuel or insurance. The purchase is a capital expense rather than a day-to-day running cost. The way it’s treated for tax depends on your circumstances and the method you use.

If you use the mileage method for that vehicle, you generally don’t claim separate depreciation or the purchase price as an expense, because the mileage rate is meant to simplify things and cover the overall cost of running the vehicle for business. If you use actual costs, you may be able to claim capital allowances on the vehicle purchase, usually adjusted for business use.

Because capital allowances can get technical—especially with private use, emissions categories, and how the vehicle is financed—many sole traders prefer mileage for simplicity, while others choose actual costs when it significantly increases their allowable claim. If you’re unsure, it’s worth getting tailored advice based on your numbers.

Cars vs vans vs motorcycles vs bicycles

Different vehicle types can have different simplified expense rates and rules, and the best method can depend on what you drive. For example:

• Cars: mileage method is very common and easy to maintain with a mileage log.

• Vans: if you use a van primarily for work, actual costs may be attractive, but mileage still offers simplicity.

• Motorcycles: often cheaper to run, so mileage can be very convenient.

• Bicycles: business cycling mileage can be straightforward to track and claim, particularly if your work involves local trips.

No matter the vehicle, the principle remains the same: claim only business travel, keep records, and choose a method that fits both your finances and your admin tolerance.

Common mistakes sole traders make when claiming vehicle expenses

Vehicle expenses are an area where small errors can add up. Here are some of the most common pitfalls:

Mixing commuting with business travel

A classic mistake is claiming daily commuting as business mileage. Even if you’re thinking about work, taking calls, or listening to business podcasts on the way, the journey itself is usually still commuting if it’s to a permanent workplace.

Not keeping a mileage log

It’s tempting to estimate mileage at the end of the year. But estimates without supporting records can be risky. Even a simple log is much better than nothing.

Double claiming

Some traders claim mileage and also put fuel receipts through as expenses for the same car. That can lead to overstating costs. Pick the method and stick to it for that vehicle.

Forgetting “small” travel costs

Even if you claim mileage, you might still be able to claim business-related parking, tolls, and congestion charges. These small amounts can add up over a year.

Not separating business from personal spending

When business and personal transactions are mixed together, it becomes difficult to justify claims and easy to miss deductible costs. Clear records save time and stress.

How to decide which method is best for you

The best method often comes down to three factors: money, mileage, and admin.

Money: which gives the larger claim?

If your running costs are high relative to your business mileage, actual costs might give a larger deduction. If your vehicle is economical and you drive many business miles, mileage might be competitive and far easier to manage.

Mileage: how much do you drive for work?

If you do frequent client visits or travel between sites, mileage claims can be very attractive because they scale directly with how much you drive for business.

Admin: how much paperwork can you realistically handle?

If you hate keeping receipts and doing calculations, mileage is usually the simplest route. If you’re organised and already keep detailed records, actual costs might be manageable.

A practical comparison example

Imagine two sole traders: Alex drives 12,000 business miles a year in an efficient car with low running costs. Jamie drives only 3,000 business miles but owns an older vehicle with frequent repair bills and higher insurance.

Alex might benefit from the mileage method because the calculation is simple and the deduction could be substantial given the high number of business miles. Jamie might find actual costs better because the business-use portion of real expenses could exceed the mileage-based figure.

The point isn’t that one method is always best—it’s that your own numbers matter. Running a quick comparison once a year can help you stay confident you’re not leaving money on the table.

Record-keeping that makes claims easy

Whichever method you choose, records are what keep you safe and make your tax return less painful. Good record-keeping isn’t about creating extra work; it’s about having a clean, believable story of your business activity.

Here’s a simple system that works for many sole traders:

• Keep a mileage log (even a basic one) for business trips

• Store receipts if you claim actual costs (fuel, repairs, insurance, etc.)

• Note down the purpose of trips and tie them to client work

• Keep your invoices organised so your work history is clear

Why invoice24 helps you stay on top of your admin

When you’re a sole trader, your time is your income. Every hour spent chasing paperwork is an hour you could spend doing paid work, marketing, or simply taking a break. A free invoice app like invoice24 is built for exactly this problem: it helps you keep your invoicing and business activity tidy and searchable so that your records are clearer when you’re working out expenses like mileage and vehicle costs.

Here’s how invoice24 can make this smoother:

• You can issue professional invoices quickly, which helps create a clean timeline of work and client visits.

• Your client list and invoice history provide context for business travel—useful when you’re checking that journeys were genuinely business-related.

• A well-organised invoicing routine helps you maintain consistent bookkeeping habits, making it easier to manage expenses alongside income.

• Because invoice24 is free, you can put your budget into the things that actually move your business forward—tools, equipment, training, or even just more time.

Competitors often bundle invoicing with lots of features you may never use, charge monthly fees, or make basic tasks feel heavier than they need to be. invoice24 keeps things focused: invoice creation, client billing, and clear documentation—exactly what many sole traders need to run a tidy business without adding overhead.

How to create a mileage habit that sticks

The hardest part of mileage claims isn’t the maths—it’s remembering to log the trip. The best approach is to make it tiny and routine:

• Write down the mileage at the end of each day (takes 60 seconds)

• If you visit several clients in a day, note a single entry with multiple stops

• Put a recurring reminder on your phone once a week to reconcile any missed trips

• Match trips to invoices: if you invoiced a client for a job, it’s easier to justify the travel to that job

invoice24 helps with that last point by keeping your invoicing consistent and easy to review. When you can quickly see what work you did and for whom, you’re less likely to miss deductible travel—and less likely to accidentally include non-business trips.

Vehicle costs beyond driving: what else can you claim?

Vehicle-related expenses aren’t always just mileage or fuel. Depending on your method, you may be able to claim additional costs that arise because you’re doing business travel, such as:

• Business parking fees

• Tolls or bridge charges on work journeys

• Congestion charges for business travel in charge zones

• Public transport fares if you occasionally use trains, buses, or taxis for work travel

These can be easy to forget because they feel small day-to-day. But over months, they add up. A simple habit is to record them the same day you incur them, alongside a short note of which client or job the cost relates to.

What if you use the same vehicle for personal and business use?

Most sole traders do. That’s normal, and it’s exactly why the rules focus on business travel and business-use proportions.

With mileage: you only claim business miles, so personal miles don’t matter except that you shouldn’t include them in your claim.

With actual costs: you need a fair business-use percentage. Using a mileage-based calculation (business miles vs total miles) is a common, practical way to do this. The more accurate your mileage records, the easier it is to defend your percentage.

Using your home as your business base

Many sole traders work from home and travel out to clients. In practice, this often makes it easier to define business trips, because your home may function as your base of operations. But you should still be careful and consistent in your reasoning. Record where you travelled, why, and how it relates to the work you do.

Even if you work from home, it’s still possible to have a “regular workplace” in some scenarios—so it’s worth thinking through your pattern of work and being clear about what counts as business travel for you.

Tax time: how vehicle expenses affect your profit

Your allowable vehicle expenses reduce your taxable profit. Lower taxable profit usually means less Income Tax and National Insurance to pay. That’s why vehicle claims matter: they can be one of the biggest expenses for mobile sole traders.

But the goal isn’t to “claim everything possible” in a vague way—it’s to claim what you are legitimately entitled to, backed by decent records. Clean, consistent invoicing helps here too: when your income records are organised in invoice24, it’s easier to see your business activity across the year and spot where travel and costs naturally arise.

Frequently asked questions about claiming mileage and vehicle costs

Can I claim fuel if I use the mileage method?

Generally, the mileage method is designed to cover fuel and other running costs within the flat rate, so you wouldn’t also claim fuel separately for the same vehicle’s business miles. However, you may still be able to claim certain journey-specific charges such as business parking or tolls, provided you’re not double claiming.

Do I need receipts for mileage claims?

You typically don’t need fuel receipts purely for mileage claims, but you do need a mileage record. The log is the evidence: dates, journeys, business purpose, and miles.

What if I forget to log some journeys?

Reconstruct them as soon as possible using diary entries, job notes, and invoice history. This is another reason consistent invoicing in invoice24 helps—your invoices can remind you where you went and when you did the work.

Can I change methods later?

Many sole traders choose a method and stick with it for a particular vehicle. Switching can be possible in some circumstances, but it’s not something to do casually. If you’re considering a change, run the numbers and make sure your records support the approach you want to take.

Do I need to claim every single business mile?

You don’t have to, but missing miles means missing deductions you’re entitled to. If you’re doing the driving for work, you might as well keep the log and claim it properly.

Practical tips to maximise your claim (legitimately)

There’s a difference between maximising your claim and inflating it. Maximising is about capturing what you’re genuinely entitled to. Try these:

• Log business mileage regularly, not annually

• Keep short notes for each trip (“Client A site visit”)

• Save receipts if using actual costs and organise them monthly

• Record parking, tolls, and congestion charges tied to business travel

• Keep your invoicing consistent so you have a clear record of your work

invoice24 supports that final point: when your invoicing is simple, you’re more likely to keep it up-to-date—meaning your business activity is clearly documented and your admin load stays manageable.

Why a free invoice app matters for sole traders

Sole traders often feel pressure to buy expensive software “because it’s what professionals use.” But professional results come from clarity and consistency, not from paying for features you don’t need. If your main goal is to invoice clients, stay organised, and keep records that help with your tax return, a free invoice app like invoice24 can be a smart choice.

By using invoice24, you can:

• Send invoices quickly and get paid sooner

• Maintain a clean record of your client work across the year

• Reduce the chaos of admin so you can focus on earning

• Support your expense tracking habits by keeping business activity visible

When your invoicing is under control, everything else—like claiming mileage and vehicle costs—becomes easier because the story of your business is clearly documented.

Final thoughts: choose a method you can maintain

So, can a sole trader claim mileage and vehicle costs in the UK? Yes—provided the travel is for business and you keep reasonable records. The smarter question is: which method will you actually maintain all year?

If you want simplicity and minimal paperwork, mileage claims are often the easiest. If your vehicle costs are high and your business mileage is relatively low, actual costs might be worth the extra admin. Either way, a little routine goes a long way: keep a mileage log, keep receipts if needed, and keep your invoicing consistent.

invoice24 helps by keeping your invoicing clean, quick, and searchable—so your client work is clearly recorded and you have the context you need when you’re organising expenses. If you’re building a sole trader business and want to stay on top of admin without adding extra cost, invoice24 is a practical place to start.