Mileage Allowance Calculator UK
Calculate your business mileage allowance using HMRC approved rates for 2026/27 — 45p per mile for the first 10,000 car miles, then 25p, plus motorcycle and bicycle rates. See the tax relief you can claim if your employer pays less.
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What this means
HMRC sets approved mileage allowance payment (AMAP) rates that you can be paid, or claim, tax-free for business journeys in your own vehicle. For cars and vans it's 45p per mile for the first 10,000 business miles each year, then 25p; motorcycles are 24p and bicycles 20p. If your employer pays less than the approved rate, you can claim tax relief (Mileage Allowance Relief) on the difference. Sole traders can deduct the approved amount as a simplified business expense.
Frequently asked questions
For cars and vans it's 45p per mile for the first 10,000 business miles in the tax year, then 25p per mile after that. Motorcycles are 24p per mile and bicycles 20p per mile. These approved rates have been unchanged for years.
If your employer pays less than the approved rate, you can claim tax relief on the shortfall through form P87 or Self Assessment. If they pay more than the approved rate, the excess is taxable. You can't claim for your normal commute to a permanent workplace.
Mileage Allowance Relief reduces your taxable income, so you get tax back at your marginal rate (20%, 40% or 45%) on the shortfall — not the full shortfall as cash. Keep a record of your business journeys to support a claim.
Disclaimer
This calculator provides estimates for guidance only. It is not financial, legal or tax advice. Always check official sources or speak to a qualified professional before making decisions.
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