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.
Calculator
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.
How to use this calculator
- Enter your business miles for the year.
- Choose your vehicle type.
- See your tax-free mileage allowance claim.
Worked example
You drive 12,000 business miles in your own car.
- First 10,000 miles at 45p = £4,500.
- Remaining 2,000 miles at 25p = £500.
You can claim £5,000 tax-free in mileage allowance.
Who this is for
- Employees using their own car for work.
- Self-employed people claiming vehicle costs.
- Anyone reimbursed below the approved rates.
How mileage allowance (AMAP) works
HMRC's Approved Mileage Allowance Payments let you claim 45p per business mile for the first 10,000 miles in a car, then 25p above that. Motorcycles are 24p and bicycles 20p per mile.
If your employer pays less than these rates, you can claim tax relief on the difference. If they pay more, the excess is taxable. Normal commuting to a permanent workplace doesn't count.
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.
For cars, 45p per mile for the first 10,000 business miles and 25p after that. Motorcycles are 24p and bicycles 20p per mile. These cover fuel and running costs.
If they pay less than the approved rates, you can claim tax relief on the shortfall. If they pay the full rate or more, there's nothing extra to claim (and excess is taxable).
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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