Can You Claim Mileage and Fuel for Tax?
Step-by-step guidance on choosing between HMRC simplified mileage rate and actual vehicle cost methods. Learn why claiming both is illegal and discover which method saves your self-employed business more money.
No, you cannot claim both mileage and fuel on your tax return for the same vehicle. Under UK tax law, these two methods are strictly mutually exclusive. Self-employed individuals must choose between claiming flat-rate simplified mileage or tracking actual vehicle costs.
Key Takeaways: Crucial rules for vehicle expenses
- You must choose one vehicle expense method per vehicle and stick with it.
- Combining mileage claims with actual fuel receipts for the same car is illegal.
- The flat-rate mileage allowance covers all running costs including fuel and repairs.
- You cannot switch methods for a specific vehicle once your choice is made.
Can you claim mileage and fuel when self-employed?
No, you cannot claim both mileage and fuel expenses simultaneously for any single business vehicle.
According to the Income Tax (Trading and Other Income) Act 2005 (ITTOIA 2005) s.94D, once you elect to use the simplified mileage rate, no other deduction is allowed for qualifying expenditure on that vehicle. Qualifying expenditure includes acquisition, maintenance, insurance, depreciation, and fuel. Therefore, claiming flat-rate mileage legally blocks you from claiming individual fuel receipts.
What is the simplified mileage allowance?
The simplified mileage allowance is a flat-rate deduction scheme that lets you claim a fixed rate per business mile driven.
This method simplifies your bookkeeping because you do not need to keep receipts for fuel or vehicle maintenance. You only need to keep a detailed log of your business journeys and the total miles travelled. The rate covers all vehicle running costs.
| Vehicle Type | Rate (2026/27 Tax Year) |
|---|---|
| Car or goods vehicle — first 10,000 miles | 55p per mile |
| Car or goods vehicle — over 10,000 miles | 25p per mile |
| Motorcycle | 24p per mile |
Approved Mileage Allowance Payments (AMAP) of 55p per mile came into effect on 6 April 2026. This rate replaces the older 45p rate which had been in place for fifteen years.
What is the actual vehicle cost method?
The actual cost method is a system of tracking every physical penny you spend on running your business vehicle.
To use this method, you must retain all receipts for vehicle expenditures throughout the tax year. You then calculate the percentage of business usage versus personal usage, applying this percentage to the overall expenses.
- Fuel costs (petrol, diesel, or electricity)
- Vehicle insurance and road tax
- Repairs, servicing, and MOT tests
- Interest on a vehicle loan
- Capital allowances to deduct the purchase cost or depreciation
Can I claim mileage and depreciation or repairs?
No, you cannot claim flat-rate mileage alongside repairs, servicing, or vehicle depreciation on your tax return.
The statutory flat rates of 55p or 25p per mile are designed by HMRC to cover more than just petrol. These rates factor in depreciation, wear and tear, annual MOTs, servicing, and road tax. Claiming these costs separately while using simplified mileage is considered double claiming under ITTOIA 2005 rules.
How to choose: Simplified mileage vs actual costs?
To choose the best method, compare your annual business mileage against your total actual vehicle receipts.
| Comparison Factor | Simplified Mileage Scheme | Actual Costs Method |
|---|---|---|
| Admin Effort | Low (just record miles) | High (keep all physical receipts) |
| High-mileage cars | Highly beneficial for small cars | Better if fuel efficiency is very low |
| Capital Allowances | Disallowed entirely | Allowed based on business share |
Important rules and locking in your decision
Once you select a vehicle expense calculation method for a specific car, you cannot switch methods later.
Under HMRC regulations, your choice locks you in for the entire ownership lifetime of that vehicle. If you start claiming the flat rate, you must use it until you sell or replace the car. Furthermore, under ITTOIA 2005 s.94E, you cannot use simplified mileage if you have ever claimed capital allowances on that vehicle.
However, you can use different methods for different vehicles. If your business owns a van and a car, you may use the flat-rate scheme for the car while tracking actual costs for the commercial van.
What mileage can you claim when self employed?
You can claim mileage for journeys undertaken solely for business purposes. This includes trips to client sites, suppliers, and business meetings, but excludes your regular commute.
How much can I claim for fuel if I am self-employed?
If you use the actual cost method, you claim the business-use percentage of your total fuel receipts. If you use the simplified mileage method, fuel is already included in your 55p or 25p flat-rate claim.
Can I claim mileage and gas on my taxes?
No. In the UK, mileage and petrol (gas) cannot be claimed together for the same car. You must choose between the flat mileage rate or actual fuel receipts.
Can I claim mileage and repairs for my business vehicle?
No. The approved flat-rate mileage allowance already factors in wear, tear, and standard vehicle maintenance. Separate repair claims are only allowed if you use the actual cost method.
Can I use different vehicle claim methods for different cars?
Yes. If you operate more than one vehicle for your business, you can choose to claim simplified mileage on one vehicle and actual costs on another.