Business mileage · UK

HMRC mileage calculator

Work out the approved mileage amount, employer reimbursement and possible Mileage Allowance Relief shortfall, using the right tax-year rates.

Updated for 2026/27

Cars and vans: 55p per mile for the first 10,000 business miles, then 25p. The previous first-band rate was 45p.

Enter qualifying business miles, not ordinary home-to-permanent-workplace commuting. The amount available for tax relief is not the amount HMRC pays you.

Your business mileage

Change any figure to update the estimate immediately.

How it works

2026/27 HMRC mileage rates

From 6 April 2026 the approved amount for employees using their own cars or vans is calculated at 55p per qualifying business mile for the first 10,000 miles in the tax year, then 25p for each additional mile. For 2025/26 and earlier tax years shown here, the first band is 45p. Motorcycles are 24p throughout; bicycles are 20p for employees.

VehicleFirst 10,000 miles (2026/27)After 10,000
Car or van55p25p
Motorcycle24p24p
Bicycle (employee)20p20p

Example: 12,000 qualifying car miles in 2026/27 produces an approved amount of £6,000: 10,000 × 55p plus 2,000 × 25p.

Important: business miles already driven in the tax year count towards the 10,000-mile threshold. For employees, qualifying mileage across cars/vans of the same kind is normally combined.

Mileage reimbursement is not a tax refund

Suppose your approved mileage amount is £550 and your employer reimbursed £300. The £250 difference may form the basis of a Mileage Allowance Relief claim. It is not a £250 refund; any tax saving depends on your actual Income Tax position and eligibility. Amounts paid above the approved amount may have tax consequences.

The self-employed simplified-expenses option gives a potential business expense deduction instead. It is an alternative to using actual vehicle running expenses and capital allowances, subject to HMRC rules. It does not automatically reduce a tax bill by the displayed amount.

Ordinary commuting to a permanent workplace generally does not qualify; some journeys to temporary workplaces may. Keep accurate journey records.

Primary sources: HMRC mileage rates, employee mileage relief and self-employed simplified expenses.

Frequently asked questions

Is HMRC mileage 45p or 55p in 2026?

The first 10,000 qualifying business miles in a car or van use 55p per mile from 6 April 2026. The earlier 45p rate applies to tax years before 2026/27.

Can I claim tax relief if my employer pays 30p per mile?

Possibly. Subject to eligibility, the difference between HMRC's approved amount and your employer's mileage reimbursement can be used to calculate mileage allowance relief. The difference is not itself a tax refund.

Does driving to work count as business mileage?

Ordinary commuting to a permanent workplace is normally excluded. Certain work-related trips, including qualifying travel to temporary workplaces, can be eligible.

Can self-employed drivers use these rates?

Eligible self-employed drivers may use HMRC's simplified mileage expenses method, but it is subject to restrictions and cannot be combined with claiming the same vehicle's actual costs or capital allowances.

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