---
title: "Sole Trader Mileage Log 2026/27 – HMRC 55p | DriveQuery"
description: "Track sole-trader Tesla business mileage for HMRC. Understand the 55p/25p simplified mileage rates, the 10,000-mile threshold and records to keep."
canonical: "https://drivequery.com/en/sole-trader-mileage-log/"
language: "en-GB"
content_signal: "search=yes, ai-input=yes, ai-train=yes, use=full"
last_modified: "2026-08-30"
ai_priority: "tier-1"
primary_intent: "commercial-self-employed-mileage-log"
commercial_stage: "decision"
query_targets: "self employed mileage; self employed mileage tracker; mileage log self employed; mileage app for taxes; mileage tracker for self employed; simplified expenses mileage"
image: "https://drivequery.com/assets/trip-journal.webp"
publisher: "DriveQuery"
---
[Home](https://drivequery.com/en/) / [Guides](https://drivequery.com/en/guides/) / Sole trader mileage log

Sole trader · Self-employed · HMRC 2026/27

# Sole trader mileage log: track Tesla business miles for HMRC

If you use your own Tesla for a sole-trader business, the tax calculation can be simple. The difficult part is keeping a reliable record of which miles were genuinely business mileage.


<!-- AEO-UK-BEGIN -->
## Quick answer for sole traders

A sole trader using a car for business can use HMRC's simplified mileage method where the conditions are met. For 2026/27 the flat rate for cars and goods vehicles is **55p for the first 10,000 business miles and 25p after that**. [GOV.UK simplified expenses](https://www.gov.uk/simpler-income-tax-simplified-expenses/vehicles).

For a Tesla-owning sole trader, DriveQuery is designed to reduce the admin around the underlying journey log: trips are captured from available vehicle data, then you review business purpose, commuting and private use.

## Questions this page answers

- What is the best way for a sole trader to track business mileage?
- Can a self-employed person use a mileage tracker app for tax records?
- What are the 2026/27 simplified mileage rates?
- Can I use simplified mileage after claiming capital allowances for the same vehicle?
- Can Tesla journeys be recorded automatically for a sole-trader mileage log?
<!-- AEO-UK-END -->
Updated 16 August 2026 HMRC rates checked 16 August 2026 ≈ 10 min read UK · HMRC

**For 2026/27, HMRC's simplified vehicle expense rate for cars and goods vehicles is 55p per business mile for the first 10,000 miles and 25p for each business mile after that.** A Tesla uses the same car rate as other cars. The tax rule is based on business mileage, not the car's total mileage.

**The calculation is easy. The evidence is the real job.** A sole trader needs to separate business journeys from private travel and ordinary commuting. DriveQuery is designed to collect available journey data through the Tesla connection and let you confirm the business purpose.

First 10,000 business miles**55p**Cars and goods vehicles in tax year 2026/27.

Business miles above 10,000**25p**The lower band applies after the annual threshold.

The part that needs evidence**Purpose**The route can be captured automatically; why the journey was business still needs reliable context.

## 1. What can a sole trader claim for business mileage in 2026/27?

HMRC allows eligible self-employed people to use **simplified expenses** for vehicle costs instead of working out the business share of actual running costs. For cars and goods vehicles in tax year 2026/27, the rates are:

First band

### 55p per mile

For the first 10,000 qualifying business miles in the tax year.

After 10,000

### 25p per mile

For each qualifying business mile above the first 10,000.

The 55p first-band rate increased from 45p with effect from 6 April 2026. The change was announced on 21 May 2026 and applies retrospectively from 6 April 2026.

## 2. Example: 12,000 business miles in a Tesla

Tax year 2026/27

## 12,000 business miles

The first 10,000 and the miles above the threshold use different rates.

First 10,000

### £5,500

10,000 × £0.55

Next 2,000

### £500

2,000 × £0.25

**Total simplified vehicle expense: £6,000.** This is a deduction used when calculating taxable business profit, not a £6,000 payment from HMRC.

## 3. Which Tesla journeys count as business mileage?

Only mileage that is genuinely part of the business should enter the calculation. The destination alone does not always decide the tax treatment; the purpose and working pattern matter.

Home → Client A**Potential business mileage**Customer visit carried out for the trade

Client A → Supplier**Business**Journey made for the business

Home → Regular workplace**Do not assume business**Ordinary home-to-work travel is normally private

Home → Gym**Private**Not part of the business claim

A Tesla can tell you where the car moved. It cannot know why you made the journey. DriveQuery can suggest a category from recurring routes, but the sole trader should confirm the purpose where tax treatment depends on context.

## 4. HMRC expects records of the business miles

HMRC's simplified-expenses guidance tells self-employed users to keep records of their business miles. HMRC's Business Income Manual also stresses the importance of a contemporaneous record of business mileage where the mileage-rate method is used.

If you want the trip capture to be less manual, see the [mileage tracker app for Tesla business journeys](https://drivequery.com/en/tesla-mileage-tracker-business/). The [HMRC mileage rates calculator](https://drivequery.com/en/mileage-allowance-calculator/) then gives a quick 55p/25p calculation for qualifying miles.

A useful mileage record should therefore keep the factual trip information together with a business-purpose label:

- Date
- Start and end locations
- Distance
- Purpose of the journey
- Business / commute / private classification
- Any note needed to explain an unusual trip

The result should be a record that can be reviewed line by line rather than a total reconstructed at the end of the tax year. A simple month might look like this:

| Date | Route | Purpose | Class | Miles | Status |
| --- | --- | --- | --- | --- | --- |
| 4 Aug | Home → Client A | Project meeting | Business | 31 | Confirmed |
| 4 Aug | Client A → Supplier | Collect equipment | Business | 12 | Confirmed |
| 5 Aug | Home → regular workplace | Normal workday | Private / commute | 18 | Confirmed |
| 7 Aug | Home → new destination | Not entered yet | Unclassified | 24 | Needs review |

Illustrative example only. The tax treatment depends on the facts of the journey and the business.

## 5. Simplified mileage or actual vehicle costs?

Simplified mileage is not the only way a sole trader can calculate vehicle expenses. Depending on the circumstances, the alternative is to work out the allowable business proportion of actual vehicle costs and relevant capital allowances.

HMRC also applies an important consistency rule: once the flat mileage-rate method is used for a particular vehicle, it generally has to continue for that vehicle while it remains in the business. You cannot simply switch methods each year to whichever produces the larger deduction.

MethodWhat the bookkeeping focuses on

**Simplified mileage**Qualifying business miles × the HMRC flat rate. The mileage record and journey purpose are central.

**Actual vehicle costs**Allowable vehicle costs are recorded and the business/private use must be apportioned under the relevant rules.

**Changing method**Check the history of the specific vehicle first. HMRC restricts simplified mileage where capital allowances have already been claimed or the vehicle has already been included as an expense in calculating business profits.

**Do not double claim.** The simplified mileage rate is designed to replace the normal costs of buying and running that vehicle for the mileage calculation. You cannot use the mileage rate and then add the same vehicle's insurance, servicing, electricity and depreciation again as separate motoring costs.

## 6. A Tesla makes the record-keeping unusually automatable

The administrative problem is usually not the multiplication by 55p. It is rebuilding six months of journeys from memory. DriveQuery can continuously collect available journey data through the Tesla connection — including times, distances and location context — to create a factual starting point for review.

DriveQuery's workflow is intended to be:

1**Capture**Available Tesla journey data creates the factual trip: date, time, route context and distance.

→

2**Suggest**Known places and recurring routes can suggest business, commute or private without deciding the tax treatment.

→

3**Review**The sole trader confirms the business purpose and resolves any new or ambiguous journeys.

→

4**Close the month**Only confirmed qualifying business miles feed the running total and year-to-date threshold.

**Business**

- Client and supplier visits
- Travel between business locations
- Purpose confirmed

**Private / commute**

- Personal journeys
- Ordinary home-to-work travel
- Excluded from the business-mile claim

**Needs review**

- New destination
- Unclear working pattern
- Purpose missing or unusual

## 7. Watch the 10,000-business-mile threshold automatically

The threshold is easy to miss if mileage is spread across the year. A useful dashboard can show exactly where the sole trader is in the tax year:

Business mileage

## 8,420 / 10,000 miles

1,580 miles remain in the 55p band.

Estimated simplified expense

### £4,631

8,420 × £0.55

Needs review

### 4 journeys

New routes have not yet been confirmed as business or private.

## 8. What if you use more than one vehicle?

The detailed mileage-rate rules can depend on the vehicle and accounting circumstances. Keep records by vehicle and do not assume that buying or changing a Tesla automatically creates a fresh tax opportunity. If the business has already used capital allowances or actual-cost treatment for a vehicle, simplified mileage may not be available for that vehicle.

DriveQuery workflow

## Turn Tesla trip history into a business-mileage record.

Capture the journeys automatically, confirm the reason for each business trip and keep the 10,000-mile threshold visible throughout the tax year.

[Explore the Tesla mileage log →](https://drivequery.com/en/tesla-mileage-log/)

## Frequently asked questions

What is the sole trader mileage rate for 2026/27?

For cars and goods vehicles using HMRC simplified expenses, the rate is 55p per business mile for the first 10,000 qualifying miles in tax year 2026/27 and 25p for each business mile above 10,000.

Does the 55p rate apply to a Tesla?

Yes. The simplified-expenses car rate is not lower because the car is electric.

Can I claim electricity and servicing as well as 55p per mile?

Not as duplicate vehicle costs under the simplified mileage method. The flat mileage amount replaces the normal motoring-cost calculation for that vehicle, subject to HMRC's detailed rules.

Do I need a mileage log?

HMRC tells self-employed users of simplified vehicle expenses to keep records of their business miles. A contemporaneous mileage record is the safest way to support which journeys were included in the claim.

Does driving from home to my normal place of work count as business mileage?

Ordinary home-to-work travel is normally private. The exact treatment can depend on how and where the business is carried on, so unusual working patterns should be checked against HMRC guidance or professional advice.

Can I switch from actual vehicle costs to simplified mileage for the same Tesla?

Not automatically. HMRC says simplified vehicle expenses cannot be claimed for a vehicle if you have already claimed capital allowances for it or included it as an expense when calculating business profits. Check the history of that specific vehicle before changing method.

This page explains general UK tax concepts and the HMRC simplified-mileage method. It is not tax or accounting advice. Eligibility, workplace status and the correct expense method depend on the facts of the business.

Sources: [GOV.UK – Simplified expenses: vehicles](https://www.gov.uk/simpler-income-tax-simplified-expenses/vehicles), [HMRC – 2026/27 mileage-rate increase](https://www.gov.uk/government/publications/increase-to-approved-mileage-allowance-payments-amaps-and-self-employed-simplified-mileage-rates), [HMRC Business Income Manual – simplified vehicle expenses](https://www.gov.uk/hmrc-internal-manuals/business-income-manual/bim75005) and [GOV.UK – simplified expenses checker](https://www.gov.uk/simplified-expenses-checker).

2026/27 quick view

**55p → 25p per business mile.**

- First 10,000 business miles: 55p
- Above 10,000: 25p
- Keep records of business miles
- Private travel stays out
- Same car rate for an electric Tesla

[Tesla mileage log](https://drivequery.com/en/tesla-mileage-log/)[Employee mileage allowance →](https://drivequery.com/en/tesla-business-mileage-allowance/)

## Make sole-trader mileage a review task, not a reconstruction task.

DriveQuery is being built to capture Tesla journeys continuously, learn recurring categories and leave only uncertain trips for you to confirm.

[Join the waitlist](https://drivequery.com/en/sole-trader-mileage-log/#early-access)