How Much Does Van Mileage Cost?
Quick Answer
HMRC rate: 45p/mile (first 10,000), 25p/mile after
Actual running cost: typically 35–55p/mile including fuel, insurance, servicing, depreciation, and tyres.
HMRC Mileage Allowance Payments (MAPs)
If you use your own vehicle for business travel, HMRC allows you to claim:
- First 10,000 miles/year: 45p per mile
- Over 10,000 miles/year: 25p per mile
- This applies to cars and vans (same rate)
- These are tax-free amounts — you pay no tax on mileage claimed at these rates
Actual Running Costs Breakdown
For a typical trade van (e.g., Ford Transit Custom, 15,000 miles/year):
- Fuel: ~15p/mile (diesel at 150p/litre, 35mpg)
- Insurance: ~3–5p/mile (£500–800/year)
- Servicing & MOT: ~2–3p/mile (£300–500/year)
- Tyres: ~1–2p/mile
- Depreciation: ~10–20p/mile (biggest cost)
- Road tax: ~1p/mile
- Total: approximately 35–55p/mile
Claiming vs Actual Costs
You can either use the simplified HMRC mileage rate (45p/25p) or claim actual costs (fuel, insurance, depreciation etc.) but not both. Once you choose a method for a vehicle, you must stick with it. Most sole traders find the simplified method easier.
Electric Vans
Electric van mileage rates are the same 45p/25p for HMRC purposes. Actual running costs are typically lower: ~5–7p/mile for electricity vs ~15p/mile for diesel, though purchase price is higher.
Last updated: April 2026. HMRC rates are current as of 2025/26 tax year. Always check the latest HMRC guidance for any changes.