Mileage Claim Calculator UK

How Does the Mileage Claim Calculator Work?

Start by selecting the appropriate vehicle type and entering the number of qualifying business miles travelled during the relevant tax year. Depending on the fields available, the calculator may also ask how much an employer has already reimbursed.

For cars and vans, the calculator separates mileage falling within the first mileage band from mileage above the annual threshold. It then applies the appropriate rate to each part of the journey total.

Motorcycles and bicycles use their own rates. Where an employee carries qualifying fellow employees as passengers during a business journey in a car or van, a separate passenger payment may also be relevant where the calculator includes that input.

The calculation is generally based on:

• the selected vehicle type;
• the number of qualifying business miles;
• the applicable rate for the selected tax year;
• the annual mileage threshold where relevant;
• any employer reimbursement entered; and
• any qualifying passenger mileage entered.

The calculator estimates the approved mileage amount rather than the actual cost of fuel, insurance, servicing, repairs or depreciation. The mileage rate is intended to represent the wider cost of using a personally owned vehicle for qualifying business journeys.

Do not enter ordinary journeys between home and a permanent workplace. These are generally treated as commuting rather than business mileage, although different rules may apply to travel involving temporary workplaces or itinerant work.

What Do the Mileage Claim Calculator Results Mean?

The calculator may show one or more results depending on the information entered. Understanding the difference between a mileage claim, an employer payment and tax relief is important because these amounts are not necessarily the same.

What does the approved mileage amount mean?

The approved mileage amount is the maximum mileage payment calculated using the statutory mileage rates for qualifying journeys in an employee’s own vehicle.

For employees, an employer may generally reimburse qualifying business mileage up to the approved amount without the payment being treated as taxable earnings, subject to the applicable rules.

The approved amount is calculated from the qualifying business miles rather than the employee’s actual vehicle costs. A driver with high fuel or maintenance costs does not automatically receive a higher approved amount.

What does employer reimbursement mean?

Employer reimbursement is the amount paid by an employer towards the employee’s qualifying business mileage.

An employer may choose to pay the approved mileage rate, a lower internal rate or no mileage reimbursement. Employment contracts and workplace expense policies vary, so the statutory approved amount does not necessarily require an employer to pay that full amount.

If the employer pays less than the approved amount, the employee may be eligible to claim Mileage Allowance Relief on the difference. The employee does not usually receive the full difference from HMRC. Relief is normally given based on the employee’s applicable Income Tax rate.

What does the mileage shortfall mean?

The mileage shortfall is the difference between the approved mileage amount and the qualifying reimbursement received from the employer.

For example, if the approved amount is £2,750 and the employer pays £2,000, the unreimbursed balance is £750. Subject to the rules, tax relief may be available on the £750 balance rather than HMRC paying the employee £750 directly.

A taxpayer receiving relief at 20% on a qualifying £750 balance could receive an illustrative tax reduction of £150. A taxpayer receiving relief at 40% could receive an illustrative reduction of £300, subject to sufficient income being taxed at that rate and the individual’s wider circumstances.

What does an excess reimbursement mean?

An excess reimbursement arises where mileage payments exceed the approved amount calculated under the applicable rules.

The excess may need to be reported and treated as taxable, depending on how the payment is made and processed. Employers should apply the relevant payroll and expenses rules rather than assuming the entire payment is tax-free.

What Is an Illustrative Mileage Claim Calculation?

Illustrative mileage example: An employee uses their own car for 12,000 qualifying business miles during the 2026/27 tax year.

The example assumes that all journeys qualify as business travel, the employee owns or personally leases the vehicle, no mileage has been claimed through another employer for the same journeys, no passenger payment is included and the selected tax-year rates apply.

Based on these assumptions, the calculator would estimate an approved mileage amount of £6,000.

If the employer had already reimbursed £4,800, the illustrative mileage shortfall would be:

£6,000 approved amount minus £4,800 employer reimbursement equals a £1,200 unreimbursed balance.

The employee would not normally receive £1,200 directly as a tax refund. If the full balance qualifies for Mileage Allowance Relief, the tax effect would depend on the employee’s applicable Income Tax rate and wider tax position.

For illustrative purposes, relief at 20% on £1,200 would equal £240. Relief at 40% would equal £480, provided the taxpayer has sufficient income chargeable at the relevant rate. The calculator result should therefore distinguish between the mileage shortfall and the possible tax reduction.

What Mileage Rates Does the Calculator Use?

For the 2026/27 tax year, the approved rates for qualifying business mileage in a personally owned vehicle are shown below.

The 10,000-mile threshold applies to the combined qualifying mileage for cars and vans within the relevant employment or simplified-expense calculation, rather than separately to every car used.

Where qualifying fellow employees travel as passengers in an employee’s car or van on a business journey, an employer may make an additional approved passenger payment of 5p per passenger per business mile. The conditions for passenger payments differ from the ordinary mileage rules, and Mileage Allowance Relief is not generally available merely because an employer pays less than the passenger rate or pays nothing.

Rates are established under UK legislation and administered by HMRC. The official GOV.UK mileage and travel rates should be checked where the selected tax year or vehicle treatment is uncertain.

Which Journeys Usually Count as Business Mileage?

A journey may usually qualify where it is made wholly for an employment or business purpose. The specific facts matter, including the destination, reason for travel, workplace arrangements and whether the journey is substantially the same as ordinary commuting.

Potentially qualifying journeys can include:

• travel from one workplace to another workplace;
• journeys to visit customers, clients or suppliers;
• travel to attend an external business meeting;
• journeys to a temporary workplace, subject to the temporary-workplace rules;
• travel to collect business supplies or equipment;
• journeys made to deliver goods or provide services; and
• other necessary journeys undertaken as part of employment duties or a trade.

The purpose of each journey should be recorded. A general statement such as “business travel” may not provide enough detail to demonstrate why the journey qualified.

A journey can contain both private and business elements. Where a substantial private detour is made, the additional private mileage should not normally be included in the business mileage claim.

Does Commuting Count as Business Mileage?

Driving from home to the normal office, shop, warehouse, factory or other permanent workplace is generally treated as private travel. The same principle normally applies to the return journey home.

Calling the workplace a business location or using a personal vehicle does not turn ordinary commuting into qualifying mileage. The journey must satisfy the business-travel rules.

Travel to a temporary workplace may qualify where the statutory conditions are met. However, a workplace can become permanent based on the length, pattern and expectation of attendance.

The temporary-workplace rules include detailed conditions and restrictions. For example, regular attendance at the same location over a sufficiently long period may affect whether the workplace remains temporary.

Home-based working does not automatically mean that every journey from home is business travel. The tax treatment depends on whether the home is objectively a workplace and on the nature and purpose of the journey.

Can Employees Claim Mileage When Using Their Own Vehicle?

An employer can reimburse an employee for eligible business mileage. Payments up to the approved amount may generally be made without an Income Tax charge, subject to the mileage rules and accurate records.

The employer is not necessarily required by tax legislation to pay the full approved mileage rate. The amount actually paid may depend on the employment contract, employer policy or sector agreement.

Where the employer pays less than the approved amount, the employee may be able to claim tax relief on the qualifying shortfall. The calculation is generally:

Approved mileage amount minus employer mileage payments equals the amount potentially eligible for Mileage Allowance Relief.

The calculator automatically performs this comparison where an employer-reimbursement field is available. The result remains illustrative because eligibility depends on the journeys, records and employment circumstances.

Employees can review the wider effect of taxable pay and reliefs using the Income Tax Calculator, although the mileage relief must first be calculated and claimed correctly.

What Is Mileage Allowance Relief?

The relief applies to the qualifying difference between the approved amount and the employer’s mileage payments. It does not normally reimburse the employee for the entire shortfall.

For example, where the qualifying mileage shortfall is £500, a taxpayer receiving relief at 20% could obtain an illustrative £100 tax reduction. A taxpayer receiving relief at 40% could obtain an illustrative £200 reduction, subject to the individual’s taxable income and applicable rate.

If an employer fully reimburses the approved amount, there is generally no unused balance on which to claim Mileage Allowance Relief. If the employer pays more than the approved amount, the excess may instead be taxable.

An employee may be able to claim eligible employment-expense relief for the current tax year and certain earlier tax years, subject to statutory time limits. The appropriate claim method depends on whether the individual completes Self Assessment and the value and nature of the claim.

The official GOV.UK guidance for vehicles used for work explains the information required and available claim routes.

How Do Mileage Claims Work for Self-Employed People?

Simplified expenses allow an eligible self-employed person to multiply qualifying business mileage by a flat rate. The resulting amount can generally be included as a business expense when calculating taxable trading profit.

The rates for cars and goods vehicles use the first 10,000 business miles and excess-mileage bands. Motorcycles use a separate flat rate. Bicycles are not treated in exactly the same way under the self-employed simplified-expense rules as employee Approved Mileage Allowance Payments, so the correct rule should be checked before relying on a bicycle amount.

The simplified mileage amount is an expense deduction, not a direct repayment from HMRC. It may reduce taxable trading profit where the relevant conditions are met.

A self-employed person using simplified mileage for a vehicle cannot generally also claim the vehicle’s actual fuel, insurance, repairs, servicing, vehicle tax and depreciation costs for the same period. The mileage rate is intended to cover the overall running cost.

Simplified mileage may not be available for a vehicle where capital allowances have already been claimed or where actual vehicle expenses have previously been used in circumstances that prevent switching methods.

The choice between simplified mileage and actual vehicle costs can affect taxable profit over several years. The best result depends on mileage, vehicle costs, private use, vehicle value and the applicable rules.

After calculating eligible business expenses, a sole trader can use the Self-Employed Tax Calculator to estimate Income Tax and applicable National Insurance based on the resulting profit.

Can Limited Company Directors Claim Business Mileage?

A limited company is legally separate from its director. Where a director uses a private car for qualifying company journeys, the company may reimburse the director using the approved mileage rates.

The company should retain sufficient records showing the date, destination, purpose and business mileage for each journey. Payments should not be based on unsupported estimates.

Ordinary commuting between the director’s home and a permanent workplace is generally private travel. A director working partly from home should not assume that every journey from home to company premises or another location qualifies.

Where the company pays less than the approved amount, the director may be able to claim Mileage Allowance Relief on the qualifying shortfall. Where the company pays more, the excess may have tax and reporting consequences.

Payments for qualifying mileage are separate from salary and dividend decisions. Directors reviewing company remuneration can use the Director Salary Calculator for an illustrative comparison of salary-related costs.

Are Company Car Mileage Claims Calculated Differently?

The Approved Mileage Allowance Payment rates are designed for employees using their own cars, vans, motorcycles or bicycles for qualifying business journeys.

Where an employee uses a company car, the vehicle is owned or leased by the employer rather than the employee. Reimbursement for business fuel may therefore be considered using actual costs or HMRC advisory fuel rates, depending on the arrangement.

Advisory fuel rates vary according to fuel type, engine size and the date the journey is made. They are reviewed periodically and should not be confused with the fixed approved mileage rates used for private vehicles.

Electric company cars can also have separate advisory electricity rates for business travel. Charging arrangements and the ownership of the vehicle affect the correct treatment.

The Company Car Tax Calculator can estimate the taxable benefit associated with a company car. It does not replace a business-fuel reimbursement calculation.

Can Fuel, Repairs and Insurance Be Claimed Separately?

For an employee using their own vehicle, the approved mileage rate covers more than fuel. It is intended to recognise costs associated with owning and operating the vehicle, including fuel or electricity, servicing, repairs, insurance, vehicle tax and depreciation.

An employee cannot normally claim the mileage rate and then separately claim ordinary fuel, MOT, insurance and repair costs for the same journeys.

For eligible self-employed users, the simplified mileage method similarly replaces the calculation of actual running costs for the vehicle. Parking fees, tolls and certain other journey-specific costs may be considered separately where they satisfy the relevant rules, but fines and penalties are generally not allowable.

Where actual vehicle costs are used instead of simplified mileage, the business proportion must usually be calculated and supported. Capital allowance rules may also apply to the cost of purchasing the vehicle.

Do Electric and Hybrid Cars Use Different Mileage Rates?

The approved mileage rate does not vary according to whether a personally owned car is powered by petrol, diesel, electricity or a hybrid system.

The employee’s actual charging or fuel cost does not change the approved mileage calculation. The same rate can therefore apply even where two employees have very different running costs.

Company-owned electric and hybrid cars are treated differently. Business fuel or electricity reimbursement may involve advisory rates or actual costs rather than the private-vehicle mileage rates.

Electric bicycles may also be treated according to their legal classification. An electrically assisted pedal cycle may be treated as a bicycle, while another type of powered cycle may fall under different rules.

What Factors Can Affect the Mileage Claim Result?

• Vehicle type: Cars, vans, motorcycles and bicycles may use different rates.
• Tax year: The calculator must apply the rates for the selected tax year.
• Total business mileage: Car and van mileage may be split across more than one rate band.
• Multiple vehicles: Using more than one car does not necessarily provide a separate first-mile allowance for each vehicle.
• Employer reimbursement: Payments received reduce the mileage balance potentially eligible for tax relief.
• Employment: Mileage totals and approved amounts may need to be considered separately for different employments.
• Journey purpose: Private travel and ordinary commuting should not be included.
• Temporary workplaces: Whether a location is temporary depends on the statutory conditions.
• Vehicle ownership: Company-owned vehicles are generally treated differently from personally owned vehicles.
• Passenger mileage: Additional passenger payments may apply only where the relevant conditions are satisfied.
• Records: Unsupported or incomplete mileage may not be accepted as part of a claim.
• Tax rate: The value of Mileage Allowance Relief depends on the taxpayer’s applicable Income Tax position.

The calculator applies the numerical values entered but cannot determine whether each journey qualifies. Review the mileage log and employment circumstances before using the result in a formal claim.

What Mileage Records Should Be Kept?

Records may be maintained in a mileage app, spreadsheet, expense system, diary or another consistent format. The method used should allow the business purpose and distance to be checked.

A useful mileage record can include:

• the date of the journey;
• the starting location or postcode;
• the destination or postcode;
• the reason for the journey;
• the name of the customer, workplace or event where relevant;
• the number of qualifying business miles;
• the vehicle used;
• any passengers relevant to a passenger payment; and
• the amount reimbursed by the employer.

Odometer readings can support a mileage log but may not be sufficient by themselves because they do not identify which journeys were for business.

Repeated journeys should still have a clear business purpose. Estimated round numbers entered at the end of the year may be less reliable than records maintained when the journeys occur.

Records should be retained for the period required under the relevant employment, business or Self Assessment rules. Different retention requirements may apply depending on the taxpayer and how the claim is made.

What Common Mileage Claim Mistakes Should Be Avoided?

Including home-to-work commuting

Ordinary travel between home and a permanent workplace is generally private commuting rather than qualifying business mileage.

Only include journeys that satisfy the business-travel rules. The fact that an employee needs a vehicle to reach work does not normally make the commute allowable.

Using the first mileage rate for every mile

Car and van mileage above the annual threshold may be calculated using a lower excess-mileage rate.

The calculator automatically divides the mileage where applicable. Enter the full qualifying annual mileage rather than restarting the threshold for each journey or vehicle.

Treating the shortfall as the tax refund

The unreimbursed mileage balance is generally the amount on which relief is calculated, not the amount repaid directly.

A £1,000 qualifying shortfall could produce an illustrative £200 tax reduction at 20%, not a £1,000 refund.

Failing to deduct employer reimbursement

Any mileage payment received from an employer should generally be deducted when calculating the unused approved amount.

Claiming relief on the full approved amount after receiving reimbursement could overstate the claim.

Using private-vehicle rates for a company car

Company car business-fuel reimbursement generally follows separate rules.

Confirm who owns or leases the vehicle before selecting the calculation method.

Claiming mileage and actual running costs together

The same vehicle expenses should not generally be claimed twice under both the mileage and actual-cost methods.

Self-employed users should consider which method applies and whether an earlier choice restricts switching.

Entering unsupported estimates

A calculator result is only as reliable as the mileage records used.

Maintain a journey-by-journey log rather than relying solely on a general estimate of annual business travel.

What Important Information Should Users Consider?

The calculation depends on the mileage, vehicle type, tax year and reimbursement information entered. Incorrect or incomplete entries may produce a misleading result.

Employment mileage rules, temporary-workplace rules, simplified expenses and company vehicle arrangements contain detailed conditions. Similar-looking journeys can receive different treatment depending on the facts.

An employer’s reimbursement policy may differ from the statutory approved mileage amount. The approved amount determines the potential tax treatment rather than automatically creating a contractual entitlement to payment.

Where Mileage Allowance Relief is available, the actual tax benefit depends on the individual’s taxable income, applicable Income Tax rate, other expenses and wider tax position.

Professional advice may be appropriate where journeys involve multiple workplaces, homeworking arrangements, overseas travel, connected companies, directors, company cars or a mixture of business and private purposes.

Which Related Calculators May Be Useful?

The Business Mileage Calculator can help businesses and drivers review approved mileage amounts across cars, vans, motorcycles, bicycles and qualifying passenger journeys.

Employees claiming an unreimbursed mileage balance can use the Income Tax Calculator to understand their wider Income Tax position, although it does not determine whether the mileage itself qualifies.

Self-employed users can include an appropriately calculated mileage expense when using the Self-Employed Tax Calculator to estimate taxable profit, Income Tax and applicable National Insurance.

Drivers using an employer-provided vehicle can use the Company Car Tax Calculator to estimate the taxable benefit associated with the company car.

Businesses reviewing mileage alongside other operating costs may also use the Business Expense Calculator to organise and total broader business expenditure.

This Mileage Claim Calculator provides estimates only. The result does not confirm that a journey qualifies as business travel or that Mileage Allowance Relief is available. Employer policies, vehicle ownership, tax rates, workplace arrangements, record-keeping requirements and individual circumstances may produce a different outcome. Professional tax advice may be appropriate for complex mileage claims. Check GOV.UK and applicable HMRC guidance before submitting a formal claim.