How to use the mileage allowance calculator
- 1 Enter your business miles for the tax year (6 April to 5 April).
- 2 Choose the vehicle: car or van, motorcycle or bicycle.
- 3 Enter what your employer pays in pence a mile (0 if nothing).
- 4 Choose your income tax rate to see the tax you get back or owe.
Worked example
12,000 business miles in your own car, with your employer paying 30p a mile. The approved amount is 10,000 × 55p = £5,500 plus 2,000 × 25p = £500, a total of £6,000. Your employer pays £3,600, so you can claim £2,400 of Mileage Allowance Relief. As a basic-rate taxpayer that is worth £480 back from HMRC.
Claiming every mile
- Keep a log: date, journey, purpose and miles for every business trip.
- Claim the gap: if your employer pays less than 55p, claim relief on the difference.
- Count the 10,000 miles per tax year: the rate drops to 25p after that (35p from April 2027).
- Commuting does not count: only journeys for work, not to your normal workplace.
See the real fuel cost with the Fuel Cost Calculator, and check your pay with the Take-Home Pay Calculator.
Features
2026/27 rates
55p for the first 10,000 car or van miles, 25p after; 24p motorcycles; 20p bicycles.
Relief or excess
Shows Mileage Allowance Relief to claim, or the taxable part of a generous allowance.
Scottish rates
Includes 21% and 42% Scottish tax rates.
When to use it
Employees paid a low rate
Claim relief on the gap between your employer's rate and 55p. To see your full pay, use the Take-Home Pay Calculator.
No mileage paid at all
Claim relief on the full approved amount through Self Assessment or HMRC's online service.
Comparing with real costs
See how the allowance compares with your fuel bill using the Fuel Cost Calculator.
Self-employed drivers
Use the same rates as the simplified mileage method. For your tax bill, try the Self-Employed Tax Calculator.
Related Pay and Salary tasks
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, and 25p a mile after that. Motorcycles get 24p and bicycles 20p. The 55p rate replaced 45p from 6 April 2026, the first rise since 2011.
Is the mileage rate changing in April 2027?
The 28 October 2026 Budget made the 55p rate permanent and announced that the rate above 10,000 miles will rise from 25p to 35p from 6 April 2027.
What is Mileage Allowance Relief?
If your employer pays less than the approved rate, you can claim tax relief on the difference. Relief is worth the gap multiplied by your tax rate, so a basic-rate taxpayer gets 20% of it back.
How do I claim Mileage Allowance Relief?
Claim online through HMRC if your claim is £2,500 or less, or through a Self Assessment tax return if it is more. Keep a mileage log with dates, journeys and miles.
What counts as business mileage?
Journeys you make for work, such as visiting clients or temporary workplaces. Your normal commute to a permanent workplace does not count.
What if my employer pays more than 55p?
The extra above the approved amount is taxable and goes through payroll. For National Insurance, the 55p rate applies to all car and van miles, so only pay above 55p a mile is liable.
Can I claim for passengers?
Employers can pay up to 5p a mile tax-free for each colleague you carry on business, but there is no tax relief if they do not pay it.
Does the 10,000-mile limit reset?
Yes. It applies per tax year, from 6 April to 5 April, and counts business miles in all the cars and vans you use for that employer.
Do self-employed people use the same rates?
Yes. Sole traders can use the same simplified mileage rates instead of claiming actual vehicle costs, and the change to 55p applies to them too.
Results are estimates based on the official rates linked above. Confirm important figures with the issuing authority or a qualified adviser before you act on them.
Built and reviewed by Hamza Farooq, founder and lead developer
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