Travel expenses are one of the most commonly claimed — and most commonly misunderstood — categories for self-employed people. Get it right and you could save hundreds of pounds a year. Get it wrong and you risk an HMRC enquiry.
What Travel Costs Can You Claim?
You can claim the cost of business journeys — getting to clients, attending meetings, visiting suppliers, or travelling for business purposes away from your usual workplace. Here's what qualifies:
- Mileage (simplified rate): 45p per mile for the first 10,000 miles, then 25p per mile. This is the most popular method and covers fuel, insurance, wear and tear, MOT, and servicing all in one rate.
- Public transport: Train, bus, tube, and tram fares for business journeys.
- Parking: Business-related parking charges (but NOT parking fines).
- Congestion charges and tolls: For business journeys only.
- Hotels and overnight stays: When you need to stay away from home for business.
- Flights: For business trips. Economy class is the safest — HMRC may query business class for a sole trader.
- Taxis and ride-sharing: Uber, taxis for business purposes.
The Commuting Rule: The Biggest Trap
Here's the rule that catches people out: travel between your home and your regular workplace is commuting, and commuting is NOT claimable.
However, there are important nuances:
- If you work from home and travel to a client's office or a meeting, that IS a business journey because your home is your regular workplace.
- If you have a rented office and drive there every day, that commute is NOT claimable.
- If you travel from your office to visit a client, that IS claimable.
- If you go to a temporary workplace (a site or location where you'll work for less than 24 months), those journeys ARE claimable.
The key distinction: Regular commute = not claimable. Travel to temporary/client sites = claimable.
Mileage Rate vs Actual Costs: Which to Choose?
You have two options for claiming vehicle costs, but you must choose one method per vehicle and stick with it:
Option 1: Simplified Mileage Rate (Recommended for most)
Claim 45p per mile for the first 10,000 miles, then 25p per mile. This single rate covers everything — fuel, insurance, repairs, servicing, MOT, and depreciation. You cannot claim any of these separately.
You CAN still claim parking and tolls on top of the mileage rate.
Option 2: Actual Vehicle Costs
Claim the actual cost of fuel, insurance, repairs, road tax, MOT, breakdown cover, and depreciation — but only the business proportion. You'll need to track all costs and calculate the percentage of miles driven for business.
Our recommendation: The mileage rate is simpler, requires less record-keeping, and is often more generous for small-to-medium mileage. Use actual costs only if you drive a very fuel-efficient car and have high mileage.
Record-Keeping for Mileage
HMRC expects you to keep a mileage log. For each business journey, record:
- Date of the journey
- From and to locations
- Miles driven
- Purpose of the journey (e.g. "Client meeting with ABC Ltd")
You can use a simple spreadsheet, a notes app, or a dedicated mileage tracking app. The key is to record journeys as they happen — HMRC is sceptical of mileage logs created months later from memory.
Example: Travel Costs for a Self-Employed Consultant
| Expense | Amount |
|---|---|
| Business mileage: 8,000 miles at 45p | £3,600 |
| Train fares to London meetings | £480 |
| Parking (business) | £120 |
| Hotels (3 overnight trips) | £450 |
| Congestion charge (12 trips) | £180 |
| Total claimable travel expenses | £4,830 |
At the 20% basic rate, this saves £966 in income tax, plus National Insurance savings.