HMRC simplified mileage · 55p from April 2026

Mileage Tracker for Construction Subcontractors

Add your home postcode once, then a site's postcode the first time you work there. DayGraft works out the driving distance and applies HMRC's simplified rate, without you measuring a single route. Or use the free calculator below.

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Mileage allowance calculator

HMRC's simplified rate for cars and vans, 2026/27. Nothing you type leaves this page.

Only journeys to temporary workplaces count. Ordinary commuting to a permanent workplace doesn't. If you claim mileage, don't also claim fuel, insurance or repairs for the same vehicle.

Your allowance

Business miles
First 10,000 at 55p
Remaining at 25p
Mileage allowance to claim

The rules

HMRC mileage rates for 2026/27

Self-employed subcontractors can claim business mileage using HMRC's simplified expenses rate instead of working out actual running costs. From 6 April 2026, the rate for cars and vans rose from 45p to 55p a mile, the first rise since 2011.

Business miles in the tax year2026/27Before April 2026
First 10,000 miles55p45p
Each mile over 10,00025p25p

Which journeys count

Travel to a temporary workplace, such as a site you're on for a job, usually counts as business travel. Ordinary commuting to a permanent workplace doesn't. Whether a site counts as temporary depends on your circumstances, so check with an accountant if you're on one site for a long time.

Worked example

A 24-mile round trip, 220 days a year, is 5,280 business miles. At 55p, that's a £2,904 mileage allowance taken off your profit. For a basic-rate taxpayer in England, that's about £755 less tax and National Insurance.

If you claim mileage, you can't also claim fuel, insurance, repairs or road tax for the same vehicle. It's one or the other.

Sources (last checked 23 October 2026): Simplified expenses: vehicles — GOV.UK · Travel for work: temporary workplaces (490) — GOV.UK

In the DayGraft app

Mileage worked out from postcodes, not guesswork

Postcode-based and remembered

Enter a site's postcode once and DayGraft remembers the distance from home every time you log a day there.

HMRC's current rate, applied by tax year

55p a mile for the first 10,000 business miles, then 25p. Earlier tax years keep the old 45p rate, so past figures stay correct.

Multi-site days handled properly

Work two sites in one day and DayGraft suggests the real route (home, first site, second site, home) instead of counting two full round trips.

Never shown on your statement

Mileage is your own tax deduction, not something a contractor pays you for, so DayGraft keeps it off the statement you send.

Fix days you already logged

In Simple Hours, set the correct miles and apply them to days you've already logged, for the whole tax year or from a date. Nothing is deleted or re-entered.

Questions

Frequently asked questions

What is the HMRC mileage rate for 2026/27?

55p a mile for the first 10,000 business miles in the tax year, then 25p a mile after that, for cars and vans. It rose from 45p on 6 April 2026. DayGraft applies whichever rate applied at the time, so earlier tax years are unaffected.

Can I claim mileage for every site I work at?

Not always. HMRC's simplified rate generally applies to travel to a temporary workplace, not ordinary commuting to a permanent one. DayGraft works out the distance and the allowance, but doesn't decide whether a journey qualifies, so check with an accountant if you're unsure.

Does DayGraft work out mileage automatically?

Yes, from postcodes. Add your home postcode once in Settings, then a site's postcode the first time you use it. DayGraft works out the driving distance and remembers it for next time.

What happens if I work at two sites in one day?

DayGraft spots same-day entries at different sites and suggests a sensible total route, home to the first site, to the second, and home again, instead of counting two full round trips.

Is mileage shown on the statement I send my contractor?

No. Mileage is a deduction against your own income, not part of what a contractor owes you, so DayGraft keeps it off the statement.

Can I claim fuel as well as mileage?

No. If you use HMRC's mileage rate for a vehicle, you can't also claim its fuel, insurance, repairs or road tax. DayGraft's expenses section reminds you of this under Travel.

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