Mileage allowance calculator
Updated
HMRC's approved rate for a car or van is 55p a mile for the first 10,000 business miles in a tax year and 25p after that. If your employer pays less, you can claim tax relief on the difference. Enter your business miles and what you are paid.
Not financial advice. General information using HMRC rates for the current tax year (2026-27); your position may differ.
Business journeys only. Ordinary commuting to a permanent workplace does not count.
Enter 0 if you are not paid anything for the miles.
The approved amount less what you were paid. Relief is on this figure at your tax rate.
If your employer pays more than the approved amount, the extra is taxable pay.
Not financial advice. General information using HMRC rates for the 2026-27 tax year; your position may differ. Reviewed 30 October 2026.
Approved amount against what you are paid
The gap between the lines is the relief you can claim.
- Approved amount
- Paid by employer
Approved amount
- Paid by employer£00%
- Relief to claim£6,000100%
Worked example
An employee drives 12,000 business miles in their own car and is paid nothing for them. The approved amount is 10,000 miles at 55p plus 2,000 miles at 25p, £6,000. They can claim mileage allowance relief on all of it, worth £1,200 at the basic rate.
How it works
- Cars and vans: 55p a mile for the first 10,000 business miles in the tax year, 25p after. Motorcycles 24p and bicycles 20p a mile.
- If your employer pays less than the approved amount, you claim tax relief on the difference (mileage allowance relief).
- If your employer pays more, the excess is taxable and goes through payroll.
- Self-employed people can use the same rates as simplified expenses instead of actual vehicle costs.
How to claim the relief
Mileage allowance relief is claimed from HMRC, not your employer: online or by post if your expenses are below HMRC's limit for that route, or on a Self Assessment return otherwise. HMRC usually gives it by changing your tax code. You can claim for the previous four tax years. Keep a log of each journey: the date, where to and from, the reason, and the miles.
What counts as a business mile
A journey you have to make in the course of your work: to visit a client, to a temporary workplace, or between sites. Travel between home and your permanent workplace is commuting and does not count, even if you take work calls on the way. A temporary workplace is broadly one you go to for a limited task or expect to attend for under 24 months.
For the self-employed
A sole trader can use the same rates as a flat-rate deduction instead of claiming a share of fuel, insurance, repairs and depreciation. Once you use the flat rates for a vehicle you must keep using them for as long as you use that vehicle in the business. You cannot then claim capital allowances on it.
HMRC approved mileage rates
| Vehicle | Rate a mile |
|---|---|
| Car or van, first 10,000 miles | 55p |
| Car or van, over 10,000 miles | 25p |
| Motorcycle | 24p |
| Bicycle | 20p |
| Each passenger on a business trip (employer payment only) | 5p |
Source: ITEPA 2003 s230(2) as amended by the Taxation (Energy and Vehicles) Act 2026 s2 (55p from 2026-27); HMRC EIM31240. The 10,000-mile threshold is per tax year across all your cars and vans used for the same employment.
Want this worked out on your real numbers?
This page works on the figures you type. CoreFi can track your income, spending and tax position from the accounts you connect, on the same HMRC rates. It does not give tax advice.
Track your own numbersFrequently asked questions
What is the HMRC mileage rate?
55p a mile for cars and vans for the first 10,000 business miles in a tax year, then 25p. Motorcycles are 24p and bicycles 20p.
My employer pays 25p a mile. Can I claim the rest?
Yes. You can claim mileage allowance relief on the difference between the approved amount and what you were paid. The relief is that difference times your income tax rate.
Is the 55p rate the most I can be paid tax-free?
It is the most your employer can pay without tax or National Insurance on the payment. Anything above the approved amount is taxable pay.
Is this financial advice?
No. It is general information using HMRC rates for the current tax year, and your position may differ.
More tax calculators
Not financial advice. This calculator gives general information using HMRC rates and thresholds for the 2026-27 tax year. It is not tax, legal or financial advice and does not take account of your circumstances; for advice, speak to a qualified accountant or tax adviser. CoreFi is a trading name of JG Core Ltd (company 16218779). Figures reviewed 30 October 2026.