UK mileage claim calculator
Turn business miles into the money HMRC approves, or work backwards from a figure to the distance behind it. 55p per business mile, banded to 25p past 10,000, applied the way it actually works.
Approved mileage allowance payments
£660.00on 1,200 miles of business travel
- 1,200 miles at 55p£660.00
The 55p rate applies from 6 April 2026, replacing the 45p that had stood since 2011.
Figures are estimates for record-keeping, not tax advice.
What the rates come to
The approved rates cover fuel, servicing, insurance, tax and depreciation. Everything it costs to put your own car on the road for work.
| Business miles | First band | Second band | Approved mileage allowance payments | Looks like |
|---|---|---|---|---|
| 500 | 55p | 25p | £275.00 | A light month |
| 2,500 | 55p | 25p | £1,375.00 | A regular run to clients |
| 10,000 | 55p | 25p | £5,500.00 | The full first band |
| 15,000 | 55p | 25p | £6,750.00 | Past the threshold |
How the calculation works
The two rates and the threshold
For cars and vans the approved rate is 55p a mile for the first 10,000 business miles in a tax year and 25p after that. For an employee, the 10,000 covers every car and van you use for that job, not each car separately. A second job with an unconnected employer has its own 10,000. If you are self-employed, it covers all the cars and vans in the business. It resets on 6 April.
A journey that takes you past 10,000 miles is split at the point it crosses: the miles below the line are paid at 55p, the miles above at 25p. This calculator splits it the same way, which is why the breakdown shows two bands once you go past the threshold.
Passengers
Your employer can pay up to 5p a mile for each colleague you carry on a business journey, free of tax. Paying it is optional. If they do not pay it you cannot claim tax relief for it, and there is no passenger rate for the self-employed.
If your employer pays less than the approved rate
You can claim Mileage Allowance Relief on the shortfall. You do not get the shortfall back in cash: you get tax relief on it, so a basic-rate taxpayer sees roughly 20% of it. Claim through Self Assessment, or a P87 if you do not file a return. Enter what your employer pays above and the calculator shows what the relief is worth.
What counts as a business mile
Travel to a temporary workplace, between sites, or to a client usually qualifies. Ordinary commuting, home to a permanent workplace, does not. Our guide on what counts as a business mile works through the awkward cases, and the rates explained covers the thresholds in more depth.
Company cars are different
These rates apply to your own vehicle. If the car belongs to the company, fuel is handled through Advisory Fuel Rates instead, which are lower, vary by engine size and fuel type, and are revised quarterly.
Questions
What are the HMRC mileage rates for 2026/27?
The approved mileage allowance payment rates for cars and vans are 55p a mile for the first 10,000 business miles in a tax year and 25p a mile after that. The 55p rate applies from 6 April 2026, replacing the 45p that had stood since 2011. Motorcycles are 24p and bicycles 20p, with no threshold.
Does the 10,000-mile threshold reset every year?
Yes. It resets on 6 April. It counts your business miles in every car or van you use for one job, not per car. A job with an unconnected employer has its own 10,000.
What is the 5p passenger rate?
Your employer can pay up to 5p a mile for each colleague you carry on a business journey, free of tax. Paying it is optional. If they do not pay it you cannot claim tax relief for it, and there is no passenger rate for the self-employed.
What if my employer pays less than 55p a mile?
You can claim tax relief on the difference through Mileage Allowance Relief. If you drive 4,000 business miles and are paid 25p a mile, the approved amount is £2,200 and you were paid £1,000, so you claim relief on £1,200. Worth about £240 to a basic-rate taxpayer. Claim it through Self Assessment, or a P87 if you do not file a return.
Do commuting miles count?
No. Travel between home and a permanent workplace is ordinary commuting and does not qualify. Travel to a temporary workplace, between sites, or to a client usually does.
What records do I need to keep?
For each business journey: the date, the start and end points, the reason for the trip, and the distance. Employees who file a tax return: keep records for at least 22 months after the end of the tax year. Self-employed: at least 5 years after the 31 January filing deadline. If you might backdate a claim, keep the records for every year you claim.
General information, not advice. Written as general information and correct as far as we know on 27 September 2026. Tax rules change, and how they apply depends on your own circumstances. This is not tax, legal or financial advice: check with an accountant, a tax adviser or HMRC before you rely on it.
Where these figures come from
Every rate and rule on this page is HMRC's, not ours. These are the pages they come from, checked on 27 September 2026. The car and van rate rose to 55p for journeys from 6 April 2026. It was announced on 21 May 2026, so if your employer paid 45p for some of those miles you may be able to claim tax relief on the difference. Anything your employer pays above the approved rate is taxable.
- Travel: mileage and fuel rates and allowances The approved rates, the 10,000-mile threshold, and the 5p passenger rate.
- Expenses and benefits: business travel mileage, rules for tax How approved mileage allowance payments work.
- Claim tax relief for your job expenses: vehicles you use for work Mileage Allowance Relief when an employer pays less than the approved rate, and the records to send with a claim.
- Claim tax relief for your job expenses How to claim, and why Self Assessment filers claim on their return instead.
- Ordinary commuting and private travel (490: Chapter 3) What counts as a business journey, and why the commute does not.
- Advisory fuel rates The separate, quarterly rates that apply to company cars.
- Keeping your pay and tax records: how long to keep your records How long employees must keep records.
- Business records if you are self-employed: how long to keep your records How long the self-employed must keep records.
- Increasing mileage rates The 2026 increase to 55p, announced on 21 May 2026 and backdated to 6 April.
Milometry is not a tax adviser. This page is a calculator and a summary of published guidance. Check anything that matters with HMRC or your accountant.
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