Fuel costs

Yes

Fuel used for business journeys is deductible. You can either claim actual fuel costs (keeping all receipts and a mileage log) or use HMRC's flat mileage allowance (Approved Mileage Allowance Payments, or AMAP): 45p per mile for the first 10,000 business miles in the tax year, 25p per mile after that. The mileage allowance covers cars and vans. Most sole traders use it as it's simpler and covers all vehicle running costs in one rate.

Key thresholds

45p/mile for first 10,000 business miles in the tax year (cars and vans), 25p/mile after. Motor cycles: 24p/mile flat. Bicycles: 20p/mile flat.

Common questions

Should I use the flat mileage rate or claim actual fuel costs?
For most trades, the flat mileage rate is simpler and often gives a higher deduction. Actual costs require detailed receipts for every fill-up and a mileage log to work out the business share of use. Pick one method and stick with it for the year. You cannot switch mid-year.
Can I claim fuel for driving to and from my home to a regular job site?
No. HMRC is clear: you cannot claim for travel between home and work. But travel to different client sites, or from one site to another during the day, is deductible.

Watch out for

—If you use the flat mileage rate (AMAP), you cannot also separately claim fuel, insurance, repairs, or other running costs for the same vehicle. The rate covers everything.
—Passenger payments: you can claim an additional 5p per mile per passenger (fellow employees on the same business journey) on top of the mileage allowance.

The mileage allowance rate (AMAP) is set by HMRC and reviewed periodically. Check the current rate before filing.

HMRC sources

https://www.gov.uk/expenses-if-youre-self-employed/travelhttps://www.gov.uk/government/publications/rates-and-allowances-travel-mileage-and-fuel-allowances/travel-mileage-and-fuel-rates-and-allowanceshttps://www.gov.uk/simpler-income-tax-simplified-expenses/vehicles

Last verified: May 2026 · Tax year 2026/27

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This guidance is for general information only. Tax rules change. Verify with HMRC or a qualified accountant before filing.