Mileage Calculator

How to Use the Mileage Calculator

This calculator works out how much you can claim tax-free for business mileage in your own vehicle, using HMRC's Approved Mileage Allowance Payment (AMAP) rates. Choose your vehicle type, enter the business miles for your trip, and — if you've already claimed mileage earlier in the tax year — enter your year-to-date total so the calculator applies the correct rate tier. Add any business passengers to include the passenger payment, or open the fuel cost comparison to see how the AMAP rate compares to what you're actually spending on fuel.

Current HMRC Mileage Rates (2026/27 tax year)

Vehicle	First 10,000 miles	Over 10,000 miles
Car or van	55p per mile	25p per mile
Motorcycle	24p per mile	24p per mile
Bicycle	20p per mile	20p per mile

From 6 April 2026, HMRC raised the car and van rate from 45p to 55p per mile for the first 10,000 business miles in a tax year — the first change to that rate since 2011. The rate for miles beyond 10,000 stays at 25p per mile, and the motorcycle and bicycle rates are unchanged. If you carry a colleague on a qualifying business journey, you can also claim a passenger payment of 5p per mile per passenger, on top of your own mileage claim.

Why the 10,000-Mile Threshold Matters

AMAP rates work on a sliding scale within each tax year (6 April to 5 April), not per trip. If you've already driven 8,000 business miles this year and your next trip is 500 miles, only the remaining 2,000 miles up to the threshold are paid at the higher rate — any miles beyond that drop to the lower rate. This calculator factors in your year-to-date mileage so the split is calculated correctly, rather than assuming every trip starts from zero.

Mileage Allowance vs Actual Fuel Cost

The AMAP rate isn't meant to just cover fuel — it's designed to cover the overall cost of running a vehicle for business use, including fuel, servicing, insurance, depreciation and wear and tear. Because of that, the rate will usually come out higher than your fuel cost alone. The fuel cost comparison in this calculator shows you the fuel-only cost per mile, based on your vehicle's fuel economy and the price you're paying at the pump, so you can see the margin the mileage rate leaves for those other running costs.

Employees, Employers and the Self-Employed

If your employer reimburses you at or below the AMAP rate, that payment is free of Income Tax and National Insurance. If they pay less than the approved rate, you can usually claim Mileage Allowance Relief from HMRC on the shortfall. If they pay more, the excess is normally taxable. Self-employed people can use the same rates under HMRC's simplified expenses method instead of tracking individual vehicle costs — though once you choose this method for a vehicle, you generally need to keep using it for as long as you use that vehicle for business.

Frequently Asked Questions

Does ordinary commuting count as business mileage?

No. Travel between your home and a permanent workplace is not classed as business mileage. Journeys to temporary workplaces, client visits, and travel between different work sites generally do qualify — HMRC's guidance on temporary vs permanent workplaces is the key test.

What if my employer pays a different rate?

You can still use this calculator to see what you're entitled to under the approved rates. If your employer pays less, the difference can usually be claimed as Mileage Allowance Relief on your tax return or through HMRC's online service. If they pay more than the approved rate, the excess is normally added to your taxable income.

Do these rates apply to company cars?

No — AMAP rates only apply when you're using a vehicle you personally own for business travel. If you drive a company car, your employer will usually use a different set of rates (Advisory Fuel Rates) to reimburse fuel costs, since the vehicle's other running costs are already covered by the company.

How often do HMRC mileage rates change?

Historically, the AMAP rate for cars and vans stayed frozen at 45p for around fifteen years before the increase to 55p from April 2026. Rates don't change automatically each year, so it's worth checking GOV.UK before a new tax year in case of updates.