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    Content reviewed · 2026/27 tax year

    HMRC Mileage Claim Calculator

    How much can you claim with the HMRC mileage calculator?

    From 6 April 2026 HMRC's approved rate for cars and vans is 55p per mile for the first 10,000 business miles (up from 45p), then 25p. Motorcycles stay at 24p and bicycles at 20p. If your employer pays less, you get tax relief on the shortfall at your tax rate, not the whole amount. Earlier years use 45p.

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    Many employees don't realise they're entitled to claim tax relief on business mileage — especially if their employer reimburses at a lower rate or doesn't reimburse at all. The HMRC approved rates are designed to cover all running costs: fuel, insurance, servicing, and depreciation. If you're receiving less than the approved rate, you're leaving money on the table.

    A common mistake is claiming for your daily commute. HMRC is clear: travel from home to your permanent workplace is never business mileage. But travel to a temporary workplace, client site, or meeting away from your normal base does qualify. Enter your details below to see your total allowance and potential tax relief.

    Based on HMRC Approved Mileage Allowance Payment (AMAP) rates for 2022/23 to 2026/27. Reviewed 9 October 2026 against GOV.UK.

    Want to check whether 55p a mile actually covers what you spend? The fuel cost calculator shows your real pence-per-mile at current UK pump prices.

    Mileage Details

    £

    HMRC approved rates 2026/27 (car/van)

    First 10,000 miles:55p per mileOver 10,000 miles:25p per milePassenger payment:up to 5p (employer only, no relief)

    Cars and vans rose from 45p to 55p for the first 10,000 miles from 6 April 2026. Earlier years use 45p.

    Rates checked against GOV.UK on 9 October 2026.

    HMRC approved amount

    Approved mileage amount (2026/27)

    £4,400.00

    for 8,000 business miles. This is the tax-free maximum, not a refund.

    First 8,000 miles @ 55p£4,400.00

    Mileage Allowance Relief

    Approved amount£4,400.00
    Employer reimbursement£0.00
    Eligible shortfall (relief is given on this)£4,400.00

    Estimated tax saving if all of the shortfall falls in one band:

    Basic rate (20%)£880.00
    Higher rate (40%)£1,760.00
    Additional rate (45%)£1,980.00

    Illustration only. If the shortfall straddles a tax band, the saving is split between the rates, and you can't get back more tax than you paid. Claim online through HMRC's employee expenses service or form P87, or on your Self Assessment return if you file one (required if expenses exceed £2,500).

    How HMRC Mileage Allowance Works

    Approved Mileage Rates

    HMRC sets flat-rate mileage allowances to cover the cost of using your own vehicle for business. The rate covers fuel, insurance, road tax, servicing, and depreciation — you don't need to track individual costs. For cars, the first 10,000 business miles are paid at 55p in 2026/27 (45p before 6 April 2026); miles above that drop to 25p.

    Claiming Tax Relief

    If your employer pays less than the approved rate (or nothing at all), you can claim tax relief on the shortfall. A basic rate taxpayer saves 20% of the shortfall; a higher rate taxpayer saves 40%. Scottish taxpayers get relief at their own 2026/27 rates (21% intermediate, 42% higher, 45% advanced, 48% top). Claim online or with form P87, or on Self Assessment if you file a return or expenses exceed £2,500.

    Self-Employed Mileage

    Self-employed individuals can use the simplified mileage method on their tax return. Instead of tracking actual vehicle costs, claim the flat HMRC rate per mile. Once you choose a method for a vehicle, you must stick with it for that vehicle's lifetime.

    What Doesn't Count

    Your normal commute (home to permanent workplace) is not business mileage. Neither is personal driving, even if it's in a car you also use for work. Only journeys with a clear business purpose — client visits, temporary workplaces, conferences — qualify.

    Common Mileage Claim Mistakes

    • 1.

      Claiming your daily commute

      Travel from home to your regular permanent workplace is never deductible, no matter how far. Only journeys to temporary workplaces or client sites count.

    • 2.

      Not keeping a mileage log

      HMRC can request evidence of every journey claimed. Without a log showing dates, destinations, and business purpose, your entire claim could be disallowed.

    • 3.

      Forgetting the 10,000-mile threshold

      The car rate drops from 55p (45p before 2026/27) to 25p after 10,000 business miles. Some people apply the higher rate to all miles — this will be corrected by HMRC and could trigger a closer look.

    • 4.

      Not claiming when your employer underpays

      Many employees don't realise they can claim tax relief on the difference if their employer reimburses less than the approved rate (55p/25p in 2026/27). Over a year of regular driving, this can be worth hundreds of pounds.

    Frequently Asked Questions

    What's Next?

    Fuel Cost Calculator

    Compare your actual fuel costs against the flat-rate mileage claim.

    Calculate now

    Self-Employed Tax Calculator

    Deduct mileage as a business expense on your tax return.

    Calculate now

    WFH Tax Relief Calculator

    Check past-year working from home claims (2025/26 and earlier).

    Calculate now

    HMRC Mileage Rates Explained

    The 2026/27 55p rate, earlier 45p years and how to claim.

    Calculate now

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