Quick answer: HMRC approved mileage rate for gig workers in 2025/26 is 45p per mile for the first 10,000 business miles, then 25p per mile. A delivery driver covering 8,000 miles/year claims £3,600 in mileage — reducing their tax bill by approximately £720.
HMRC mileage rates
| Vehicle | First 10,000 miles | Above 10,000 miles |
|---|---|---|
| Car or van | 45p / mile | 25p / mile |
| Motorbike | 24p / mile | 24p / mile |
| Bicycle | 20p / mile | 20p / mile |
How it works
If you claim HMRC's approved mileage rates, you cannot also separately claim fuel, insurance, vehicle tax, or servicing costs. The mileage rate covers all vehicle running costs. For most gig drivers using a car, the 45p/mile rate works out more favourably than claiming actual costs.
Keep a mileage log recording the date, destination, business purpose, and distance for every trip. A simple spreadsheet or mileage app is sufficient. HMRC can request records at any time.
Estimates based on HMRC 2025/26 rates. General guidance only — not financial, tax, or legal advice.
Your actual liability may differ. Consult a qualified accountant for personalised advice. Verify rates at gov.uk.