For most self-employed driving instructors, mileage is one of the largest deductible costs in the business - and one of the easiest to get wrong. Not because the maths is difficult, but because the record-keeping habit is easy to let slide when you're doing six lessons a day and the last thing on your mind at 8pm is writing down an odometer reading.

How HMRC's mileage allowance actually works

If you're self-employed and use your own vehicle for business, HMRC allows you to claim a fixed rate per business mile through the Approved Mileage Allowance Payments (AMAP) scheme, instead of tracking actual running costs like fuel, servicing, and depreciation individually. It's simpler, and for most instructors it works out favourably given how much of their annual mileage is genuinely business use.

The rate isn't flat across all your mileage in a tax year - it's banded:

55p
Per mile, first 10,000 miles*
25p
Per mile, above 10,000 miles
10,000
Mile threshold, cars & vans
24p
Flat rate for motorcycles

*Cars and vans, 2026/27 tax year rate shown. Always confirm the current rate for your specific tax year, as HMRC rates are reviewed periodically.

For a driving instructor doing several thousand business miles a year, that first band typically covers the majority of the tax year - which is exactly why accurate mileage logging matters. Getting the total wrong by even a few hundred miles, in either direction, changes the allowance you're entitled to claim.

What actually counts as business mileage for an ADI?

This is where instructors most commonly trip up, because your relationship with your vehicle isn't the same as an office worker's commute. Broadly:

The mixed-use trap

Because your car is used for both business and personal journeys, the burden is on you to be able to show which miles were which. A single annual "I did about 15,000 miles for work" estimate does not hold up well if HMRC ever asks for evidence - a dated, journey-by-journey log does.

What records HMRC actually expects

HMRC doesn't require a specific piece of software or a particular format, but it does expect records that can substantiate your claim if asked. In practice, that means for each business journey you should be able to show:

A running total without the underlying journey detail is much weaker evidence. If HMRC opens an enquiry, the ability to produce contemporaneous, journey-level records is the difference between a straightforward confirmation and a drawn-out and stressful process.

How long to keep mileage records

As a general rule for self-employed individuals, HMRC records supporting your tax return should be kept for at least five years after the 31 January submission deadline of the relevant tax year. For mileage specifically, keeping records for the full period your return could be queried is the safe approach - deleting a spreadsheet after twelve months because "the tax year's done" is a common and avoidable mistake.

Built into Smart Operations PRO
Journey-level mileage logging with automatic HMRC allowance calculation

Log opening and closing mileage per journey, and the app tracks your position against the 10,000-mile threshold in real time - showing exactly how much allowance you've earned to date and projecting your full-year total. Generate a PDF mileage report whenever you need one.

Frequently asked questions

What is the current HMRC mileage rate for cars?
For the 2026/27 tax year, the rate is 55p per mile for the first 10,000 business miles and 25p per mile after that, for cars and vans. Rates are periodically reviewed by HMRC, so always confirm the figure for the specific tax year you're claiming for.
Can I claim mileage allowance and fuel costs separately?
No - the Approved Mileage Allowance Payment rate is designed to cover fuel, wear and tear, insurance contribution, and depreciation in one figure. If you use AMAP, you don't separately claim actual running costs for that vehicle. It's one method or the other, not both.
Do I need to log every single journey, or can I estimate?
HMRC expects records that can substantiate your claim, which in practice means journey-level logging - date, purpose, and mileage - rather than a single estimated annual total. Estimates are a common reason claims get challenged during an enquiry.
How long should I keep my mileage log?
At least five years after the 31 January submission deadline for the relevant tax year, in line with general HMRC record-keeping guidance for the self-employed.

This guide reflects HMRC Approved Mileage Allowance Payment rates and general record-keeping guidance at the time of writing, and is provided for general information only - it is not personalised tax advice. Mileage rates are reviewed periodically and your specific circumstances may affect what you can claim. Always confirm current rates on gov.uk and speak to a qualified accountant about your own tax position.