Business Mileage Calculator UK
How this calculator works
The calculator applies the first-mile and excess-mile business mileage rates for cars and vans, plus separate motorcycle, bicycle and passenger mileage rates.
Example calculation
12,000 car or van miles are split between the first 10,000 miles and the miles above the threshold.
Business Mileage Calculator
Work out how much you can claim or reimburse tax-free for business travel in 2026/27. This calculator uses the current HMRC Approved Mileage Allowance Payment (AMAP) rates, so you get an accurate figure whether you are an employee, a self-employed driver, or an employer setting a reimbursement policy.
What Changed for 2026/27
HMRC increased the AMAP rate for cars and vans from 45p to 55p per mile for the first 10,000 business miles in a tax year. This is the first change since 2011, ending a 15-year freeze. Chancellor Rachel Reeves confirmed the increase on 21 May 2026, applying retrospectively from 6 April 2026 for the whole 2026/27 tax year.
The rate for business miles over 10,000 stays at 25p per mile. Motorcycles remain at 24p per mile, and bicycles at 20p per mile, both with no mileage threshold. An extra 5p per mile can be claimed for each business passenger carried.
Current HMRC Mileage Rates (2026/27)
Vehicle type
First 10,000 miles
After 10,000 miles
Car or van
55p
25p
Motorcycle
24p
24p
Bicycle
20p
20p
Passenger payment
5p per passenger
5p per passenger
Old Rate vs New Rate: What the Increase Is Worth
Business miles driven
At old rate (45p)
At new rate (55p)
Extra tax-free amount
5,000 miles
£2,250
£2,750
£500
8,000 miles
£3,600
£4,400
£800
10,000 miles
£4,500
£5,500
£1,000
Anyone driving the full 10,000-mile allowance gains an extra £1,000 tax-free. Our income tax calculator shows how mileage payments sit alongside your salary.
How the Calculator Works
Enter your total business miles and vehicle type. 12,000 miles in a car works out as 10,000 at 55p plus 2,000 at 25p, giving £6,500 tax-free. The threshold resets each 6 April, per employee, per employer, and doesn't roll forward.
Already Been Paid at the Old 45p Rate This Year?
Your employer can make a backdated top-up covering the 10p shortfall, tax-free. If they don't, you can claim it yourself as Mileage Allowance Relief.
If Your Employer Pays Less Than the Approved Rate
Claim the shortfall as MAR through Self Assessment or form P87. A basic rate taxpayer on a 10p/5,000-mile shortfall gets £100 back; higher rate gets £200. See our guide on claiming a tax refund from HMRC.
If Your Employer Pays More
The excess is taxable, reported via P11D or payroll, with Class 1A NI due from the employer.
Self-Employed: Simplified Mileage vs Actual Costs
Compare simplified rates against actual running costs in year one — once chosen, simplified expenses must be used for that vehicle going forward. Our self-employed tax calculator shows the impact on your bill.
What Counts as Business Mileage
Temporary workplaces, journeys between workplaces, and client visits qualify. Ordinary commuting doesn't.
Company Cars Work Differently
Company car drivers use Advisory Fuel Rates and benefit-in-kind tax instead of AMAP. Our company car tax calculator covers that separately.
Keeping Records
Log date, destination, purpose, and miles for every trip; keep records five years after the 31 January deadline. See how long to keep tax records.
Electric and Hybrid Vehicles
Privately owned EVs use the same 55p/25p AMAP rates. Company EVs use the separate Advisory Electric Rate.
Business Mileage Calculator FAQs
What is the HMRC mileage rate for 2026/27?+
Has the mileage rate really changed, or is it still 45p?+
Can I claim mileage if I'm self-employed?+
Does the 55p rate apply to electric cars?+
What if my employer still pays 45p per mile?+
Does commuting to my normal workplace count as business mileage?+
Can I claim an extra amount for carrying a passenger?+
Does the 10,000-mile threshold carry over from last year?+
How long do I need to keep my mileage records?+
Important information
This calculator gives an estimate only and should not be treated as accounting, financial or tax advice. Check official HMRC guidance or speak to a qualified adviser for complex cases.