How do I record mileage under Making Tax Digital?

How to claim business mileage when you’re in MTD for Income Tax, the simplified mileage rates, and what records to keep.

3 min read

Quick answer

You can claim business mileage using HMRC’s simplified flat rates instead of actual vehicle costs. For 2026/27 that’s 55p a mile for the first 10,000 business miles in a car or goods vehicle, then 25p a mile, or 24p a mile on a motorcycle. Record your business journeys, then put the mileage claim into your software as an expense.

Key facts

  • Cars and goods vehicles (2026/27): 55p per mile for the first 10,000 business miles, then 25p

  • Motorcycles: 24p per mile

  • Either flat rates or actual costs, not both

  • Keep a record of each business journey

Flat rates or actual costs

You can use the simplified mileage rates, or claim the actual costs of running the vehicle plus capital allowances. Once you’ve used the flat rates for a vehicle, you must keep using them for as long as you use that vehicle in your business.

What to record

  • Date of each journey

  • Start and end point, and the business reason

  • Business miles travelled

A mileage tracking app or a spreadsheet works for the log. The mileage claim then goes into your MTD software as a travel expense, at least by the time of each quarterly update.

Common questions

Can I claim my commute?

No. Travel between home and a permanent workplace isn’t business travel. Journeys to clients or temporary sites usually are.

Related guides

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Working from home expenses under Making Tax Digital

MTD Submission is an independent guide. We’re not HMRC, we’re not part of GOV.UK, and we don’t submit anything on your behalf. The information here is general, was last reviewed in September 2026, and isn’t tax or financial advice. For your own situation, check GOV.UK or speak to an accountant.

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