How self-employed Tesla drivers claim mileage on an electric car
Self-employed Tesla drivers can claim vehicle costs one of two ways: HMRC's simplified flat-rate mileage of 55p per business mile for the first 10,000 miles and 25p thereafter (2026/27), or the actual running costs apportioned by business-use percentage. Both methods require a contemporaneous mileage log distinguishing business from private journeys, and once you use simplified mileage for a vehicle you must keep using it for that vehicle.
Simplified expenses: the flat mileage method
Under HMRC's simplified expenses, you claim a flat rate per business mile instead of working out actual costs. For 2026/27 the rate is 55p per mile for the first 10,000 business miles in the year and 25p per mile after that. The rate is designed to cover running costs including electricity, insurance and wear, so you cannot also claim those costs separately. You do still need to record every business journey to total your qualifying miles.
Actual costs: apportioning by business-use percentage
Alternatively, you can claim the actual running costs of your Tesla — charging, insurance, servicing, and capital allowances on the vehicle — and deduct only the business-use proportion. That proportion comes straight from your mileage log: business miles divided by total miles. The more accurate your log, the more of your genuine costs you can defend. This method can suit high-cost or high-value vehicles, but it demands tighter record-keeping.
Which method should you choose?
Simplified mileage is straightforward and predictable; actual costs can yield a larger deduction for expensive vehicles or heavy business use. Whichever you pick, note that once you have used the simplified flat-rate method for a particular vehicle you must continue using it for that vehicle for as long as you use it in the business. Because both methods hinge on your business-use split, the quality of your mileage log determines how much relief you can actually claim.
Records HMRC expects and how long to keep them
For each business journey, record the date, start and end postcodes, purpose and distance; log commuting to a regular workplace as private. HMRC accepts electronic and telematics records, so an automatic log is ideal. Keep your records for at least five years after the 31 January Self Assessment deadline for the relevant tax year. On enquiry, the burden is effectively on you to substantiate the split, so reconstructed year-end estimates are weak evidence.
FAQ
What is the simplified mileage rate for an electric car in 2026/27?+
55p per business mile for the first 10,000 miles in the tax year, then 25p per mile thereafter. The same AMAP-style rates apply to electric cars as to petrol and diesel.
Can I switch between simplified and actual costs each year?+
Not freely. Once you use the simplified flat-rate method for a specific vehicle, you must keep using it for that vehicle for as long as it is in the business.
How long do I keep my mileage records?+
Keep self-employment records for at least five years after the 31 January Self Assessment filing deadline for the tax year concerned.
Whether you claim simplified mileage or actual costs, your relief is only as strong as your log. Odoproof captures every Tesla trip automatically with postcodes and purpose — join the waitlist and stop leaving legitimate relief on the table.
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