How does mileage work in Making Tax Digital?

Facts last checked

Transcript

How does mileage work in Making Tax Digital? You log business miles through the year, then add the flat-rate claim (55p a mile up to 10,000 miles in 2026-27, 25p after) once your fourth quarterly update is sent and before your tax return. Not as a flat-rate claim. GOV.UK says that if you use simplified expenses, you make an adjustment for them before you finalise your tax position, so the mileage claim is added after the fourth quarterly update and before your tax return. 55p a mile for the first 10,000 business miles in the tax year and 25p a mile after that. The 55p rate started on 6 April 2026; before that it was 45p. Not as digital records. GOV.UK says that if you are sure you will use simplified expenses, you do not need digital records of the actual vehicle costs. You do need a record of your business miles to support the claim. Read the full answer, with every source, at rightotax.co.uk.

Voice and visuals made with automated software, including AI.

Read the full answer, with every source

The one-minute version

Transcript

How does mileage work in Making Tax Digital? You log business miles through the year, then add the flat-rate claim (55p a mile up to 10,000 miles in 2026-27, 25p after) once your fourth quarterly update is sent and before your tax return. Not as a flat-rate claim. GOV.UK says that if you use simplified expenses, you make an adjustment for them before you finalise your tax position, so the mileage claim is added after the fourth quarterly update and before your tax return. Read the full answer, with every source, at rightotax.co.uk.

Voice and visuals made with automated software, including AI.

This is general information to help you understand the rules. It isn't tailored to your circumstances, so check your own position before acting on it.

Righto Tax is a trading name of NJG Consultancy Ltd, registered in England and Wales, company number 16095900. Registered office: Jubilee House, East Beach, Lytham St Annes, FY8 5FT.