Mileage allowance calculator (45p / 25p)

For business journeys in your own vehicle. Employees can claim tax relief on any shortfall, and the self-employed can use the same rates as simplified expenses.

HMRC approved mileage rates

VehicleFirst 10,000 milesOver 10,000
Cars and vans45p25p
Motorcycles24p24p
Bicycles20p20p

What counts as business mileage?

Trips to a temporary workplace, client or site visits, and travel between workplaces all count. Your normal commute to your permanent workplace does not.

Employer pays less than 45p?

You can claim Mileage Allowance Relief from HMRC on the difference. This calculator shows the tax refund. Claim online through your personal tax account if the total is £2,500 or less, or through Self Assessment if it's more.

Self-employed?

You can use the same rates as simplified expenses instead of actual running costs, but you must stick with that method for that vehicle. Keep a mileage log with the date, the journey, its purpose and the miles.

Source: GOV.UK travel, mileage and fuel rates, tax relief for vehicles you use for work.

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FAQs

Is 45p per mile still the rate in 2026/27?

Yes. HMRC's approved rate for cars and vans is 45p a mile for the first 10,000 business miles in the tax year and 25p a mile after that.

Does the 10,000 miles reset each year?

Yes. The 10,000-mile threshold applies per tax year (6 April to 5 April), across all your employments if they're associated.

Can I claim my commute?

No. Ordinary commuting to your permanent workplace isn't business travel. Journeys to a temporary workplace usually are.

Related calculators & guides

Making Tax Digital for Income Tax · SA deadline countdown · Payments on account · Self-employed tax · Side hustle tax (£1,000 allowance) · Child Benefit charge (HICBC) · Sole trader expenses guide · WFH tax relief 2026

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