Universal Credit Mileage Calculator: 45p vs HMRC 55p (2026/27)

If you're self-employed and on Universal Credit, the same business miles are claimed two different ways: once every month for Universal Credit, and once a year on your Self Assessment tax return. The rates aren't the same. Put your miles in below to see both.

Universal Credit claim
£0.00
HMRC tax return claim
£0.00

How the two rules work

Universal Credit: for a car, van or other motor vehicle you can report 45p a mile for the first 833 miles in each assessment period, then 25p for every mile after that. The count starts again every assessment period. Motorbikes are 24p a mile. For an ordinary car, UC doesn't let you claim fuel, insurance or repairs - only this flat rate.

HMRC (Self Assessment): from 6 April 2026 the simplified expenses rate for cars and vans is 55p a mile for the first 10,000 business miles in the tax year, then 25p. Motorbikes are 24p. If you use the flat rate you can't also claim the vehicle's running costs.

Example

You drive 900 business miles in one assessment period. For UC that's 833 × 45p + 67 × 25p = £391.60. For HMRC, if you're still under 10,000 miles for the year, it's 900 × 55p = £495.00.

What counts as a business mile?

  • Visiting clients or customers, including from your home if you work from home
  • Travelling between jobs or sites
  • Trips mainly to buy supplies or stock

Commuting to a permanent workplace and personal detours don't count. Keep a log with the date, where you went, why, and the miles.

Log every trip once - get both claims worked out

Our Universal Credit Self-Employed Workbook has a mileage log that works out the UC claim for each assessment period and the HMRC claim for the tax year, from the same trips. Excel and Google Sheets.

See the UC Self-Employed Workbook

Or buy it direct from my own shop - no marketplace fees, so it costs a little less.

Not on Universal Credit? Our UK Mileage Log spreadsheet works out your HMRC mileage claim for the year.

Sources: GOV.UK - Business expenses you can report to Universal Credit if you are self-employed; GOV.UK - Simplified expenses: vehicles. A free planning tool from TaxReadySheets, not tax or benefits advice. Nothing you type here is saved or sent anywhere.

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