UK Guide · 2025/26 & 2026/27
Contractor Mileage Claims: UK Guide for Ltd & Umbrella
UK contractors can claim mileage to client sites — but the rules depend on whether you operate via your own limited company or an umbrella, and whether your engagement is inside or outside IR35. Here is what you need to know.
Key facts for contractors
- ✓Travel to a temporary client site is usually a claimable business journey
- ✓The 24-month rule determines whether a site is temporary or permanent
- ✓Own Ltd company (outside IR35): reimburse yourself at 55p/25p from 06-04-2026 (45p/25p before) tax-free
- ✓Inside IR35: travel to the client site is typically treated as commuting — not claimable
- ✓Umbrella contractors: check your umbrella's expense policy and the 24-month rule
Your structure determines your claim
Own Limited Company
If you operate outside IR35, your company reimburses you at the HMRC AMAP rate for business journeys. Tax-free for you, deductible for the company. You need a mileage log.
Director mileage guide →Umbrella Company
Your umbrella's expense policy governs what you can claim. HMRC rules still apply — the client site must qualify as a temporary workplace under the 24-month rule.
Check your umbrella's policyThe 24-month temporary workplace rule
This is the most important rule for contractors. A client site is a temporary workplace — and travel to it is claimable — if both of these are true:
Most short-term contracts qualify. However, the 24-month clock starts from the moment you first attend — or the moment you first expect the engagement to exceed 24 months, even if it has not yet done so.
Extended contracts: If your contract is extended beyond 24 months, or you know from the outset it will run that long, the site becomes a permanent workplace. Travel to it becomes commuting and is no longer claimable — even for miles driven before the 24-month mark was reached.
HMRC mileage rates for contractors
For own-Ltd contractors outside IR35, the HMRC Approved Mileage Allowance Payment (AMAP) rates apply:
| Vehicle | First 10,000 miles | Above 10,000 miles |
|---|---|---|
| Car or van | 55p* | 25p |
| Motorcycle | 24p | 24p (no threshold) |
| Bicycle | 20p | 20p (no threshold) |
* Car and van rate increased to 55p from 06-04-2026. Before that date the rate was 45p per mile.
IR35 and mileage claims
Outside IR35
You operate as a genuine business. Travel to temporary client sites is a business journey. Your limited company can reimburse you at the full AMAP rate — tax-free for you, deductible for the company.
Inside IR35
HMRC treats you as a deemed employee of the end client. Travel from home to the client site is commuting — not a claimable business journey. Claiming it incorrectly can lead to HMRC enquiries. Speak to your accountant if you are unsure about your IR35 status.
Why accurate records matter more for contractors
HMRC scrutinises contractor tax returns more closely than most other self-employed workers. A detailed, contemporaneous mileage log serves two purposes:
Supports your mileage claim
Each journey must be documented — date, business purpose, start and end locations, and miles. Without a log, HMRC can disallow the entire claim.
Supports your IR35 position
A pattern of travelling to multiple different client sites and locations can support an outside-IR35 position. Your mileage log provides a contemporaneous record of this working pattern.
Frequently asked questions
Can a contractor claim mileage to a client site?
Yes, in most cases. Travel to a client site qualifies as a business journey if the site is a temporary workplace — meaning you do not expect to attend it for more than 24 months. Most contract engagements are shorter than this, so the travel is claimable. If a contract is extended beyond 24 months (or if you expect from the outset that it will last more than 24 months), the site becomes a permanent workplace and the travel is no longer claimable.
What is the 24-month temporary workplace rule?
HMRC defines a temporary workplace as any place you attend to perform a task of limited duration. If you attend a workplace for more than 40% of your working time and expect to do so for more than 24 months, it becomes a permanent workplace. Travel to a permanent workplace is commuting — it is not a business journey and cannot be claimed. The 24-month clock starts from when you first attend (or when you first expect the attendance to last more than 24 months).
Does operating inside IR35 affect mileage claims?
Yes. If your engagement is inside IR35, your limited company income is treated as employment income. HMRC's view is that inside-IR35 workers are effectively employees of the end client — so travel from home to the client site is commuting, not a business journey, and cannot be claimed. Outside IR35, you operate as a genuine business and travel to temporary client sites is claimable.
How do contractors via umbrella companies claim mileage?
Umbrella company contractors should check their umbrella's expense policy. Some umbrellas allow mileage claims for travel to temporary workplaces; others do not. HMRC's rules still apply — the client site must qualify as a temporary workplace. Be cautious of umbrella schemes that claim all client site travel is claimable regardless of the 24-month rule, as these arrangements can attract HMRC scrutiny.
Can a contractor claim mileage via their own limited company?
Yes. If you operate via your own limited company outside IR35, you can reimburse yourself at the HMRC AMAP rate — 55p per mile from 06-04-2026 (45p per mile before) for the first 10,000 miles, 25p above that — for business journeys using your personal vehicle. The reimbursement is tax-free for you and a deductible expense for the company. You need a mileage log recording every journey — MileageClaim provides this.
Keep your mileage log HMRC-ready
MileageClaim logs every journey, applies the correct AMAP rate, and generates a structured PDF — free forever for UK contractors operating via their own limited company.
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