KLM Associates - complete and affordable accounts service

Those clients that claim business mileage in their own cars ..

Approved mileage rates from tax year 2026 to 2027

Vehicle type First 10,000 business miles in the tax year Each business mile over 10,000 in the tax year
Cars and vans 55p 25p
Motor cycles 24p 24p
Bicycles 20p 20p

Rate has gone up to 55p from 45p on 1st 10k business miles in your own car

MTD is coming in and whilst I think it is another example of government bureaucracy gone mad we have to deal with it. We now have software to be able to submit but please be reassured .. unless your sales were more than £50K in your 2024/25 tax return then you will not have to use software / spreadsheet records until minimum April 2027. Landlords will also have to comply . MTD is NOT a full tax return .. it is only your total sales and expenses that HMRC are interested in and you do these every 3 months on a cumulative basis. Then at the end of the tax year you adjust these for any final accounting amendments and then do your normal self assessment tax return with the rest of your taxable income / reliefs . So 6 returns a year instead of 1 - well done our politicians ! As if we have not got enough to deal with at the moment - both accountants and the clients . At least the software companies are happy .. NO .. HMRC are forcing taxpayers to keep digital records but provide no software to enable you to do it !

For the moment unless you receive a letter notifying you that you must do digital returns then there is nothing you should need to do . If you have then you need to notify us immediately so we can discuss your options and get you registered with HMRC to file .