Mileage allowance calculator

Work out how much your employer can pay you tax-free for business miles in your own car, van, motorbike or bike, using HMRC's approved mileage rates. If they pay less, see how much Mileage Allowance Relief you can claim back; if they pay more, see what's taxable.

How this calculator works

HMRC sets approved mileage allowance payment (AMAP) rates for employees who use their own vehicle for work. Your employer can pay you up to the approved amount without it being taxed or reported:

1. Approved amount: business miles × the rate. For a car or van the first 10,000 business miles in the tax year get the higher rate and the rest get 25p. 12,000 miles in 2026/27 is 10,000 × 55p + 2,000 × 25p = £6,000, the example on GOV.UK.
2. If your employer pays less, you can claim Mileage Allowance Relief on the difference. It's tax relief, not a refund of the whole gap: you get the difference × your Income Tax rate. Paid 25p a mile for those 12,000 miles (£3,000), the unused £3,000 at 20% is £600 back.
3. If your employer pays more, the extra above the approved amount is taxable. Your employer reports it on a P11D or puts it through payroll, and Class 1 National Insurance is due on it.
4. Passenger payments: up to 5p a mile for each fellow employee you carry on a business trip is tax-free. There's no relief if your employer pays less or nothing.

A month's miles are multiplied by 12 for the year, and the monthly figures are the yearly ones divided by 12. If your miles vary a lot, enter the year's total instead, since the switch from 55p to 25p happens once you pass 10,000 miles in the tax year.

Claiming Mileage Allowance Relief

• Keep a log of every business journey: the date, start and end postcodes, miles, and the reason for the trip. HMRC asks for it.
• Claim online through GOV.UK's tax relief for vehicles you use for work page. If you fill in a Self Assessment tax return, claim on that instead.
• Go back up to 4 years. You can claim for the current tax year and the 4 before it, so check earlier years too (the tax year box covers 2025/26 and earlier at 45p).
• HMRC usually adjusts your tax code for the current year, so the relief comes through your pay, and pays earlier years as a refund.

Tips

• Commuting doesn't count. Your normal journey to and from your usual workplace isn't business travel. Trips to clients, other sites or a temporary workplace usually are.
• All your vehicles count together. The 10,000-mile threshold covers every car or van you use for the same employer in the tax year.
• Self-employed? HMRC's simplified expenses use the same rates for cars, vans and motorbikes (55p then 25p, and 24p), but not bicycles. Once you use them for a vehicle you have to keep using them for it.
• Company car? These rates don't apply; HMRC's advisory fuel rates do.
• See the effect on your pay with the take-home pay calculator.

Frequently asked questions

What is the HMRC mileage rate for 2026/27?

55p a mile for the first 10,000 business miles in a car or van, then 25p. Motorbikes are 24p and bicycles 20p for every mile. The car rate was 45p until 5 April 2026.

Is mileage allowance taxable?

Not up to the approved amount. Anything your employer pays above it is taxable and has National Insurance on it.

My employer pays 25p a mile. Can I claim the rest?

You can claim tax relief on the difference, called Mileage Allowance Relief. You get the difference times your tax rate, so a basic-rate taxpayer gets 20p back for every £1 of difference.

How far back can I claim mileage relief?

For the current tax year and the 4 previous tax years. Pick the year in the calculator: years before 2026/27 use 45p for the first 10,000 car miles.

Does the 10,000 miles reset each year?

Yes. It counts business miles in each tax year, from 6 April to 5 April.

Can I claim for electric cars?

Yes, the same rates apply to electric and hybrid cars you own. Electric pedal bikes use the bicycle rate; other electric bikes use the motorbike rate.

Does it save or send what I type?

No. Everything is worked out in your browser, and nothing is stored or sent anywhere.

Results are estimates for illustration only and aren't financial or tax advice. They assume all the miles are business miles in your own vehicle for one employer, and use a single tax rate for the relief. Rates from GOV.UK's travel mileage and fuel rates and business travel mileage rules, checked November 2026.