HMRC Business Mileage Claim Calculator
Work out your approved mileage amount for 2026/27, and whether you can claim tax relief or owe tax on what your employer pays you.
How does the mileage claim calculator work?
HMRC sets approved mileage rates: the amount your employer can pay you per business mile, tax-free, for using your own vehicle for work. If your employer pays you less than the approved amount (including nothing at all), you can claim tax relief on the difference. If your employer pays you more than the approved amount, the excess is taxable and should be reported.
This calculator works out which situation applies to you, the amount involved, and roughly what the relief is worth using your tax band, since the relief works by reducing the tax you pay rather than paying you the shortfall in cash.
3 worked examples (2026/27 rates)
Example 1 — Unreimbursed, basic rate taxpayer
A basic-rate taxpayer uses their own car for 8,000 business miles this tax year and gets no mileage payment from their employer.
8,000 miles × 55p = £4,400.00 (all within the first 10,000 miles)
Employer paid:£0
Relief claimable:£4,400.00 shortfall. At 20% tax, this reduces their tax bill by about £880.00
Example 2 — Partially reimbursed, higher rate taxpayer
A higher-rate taxpayer drives 12,000 business miles and is paid 30p per mile by their employer, below the approved rate.
(10,000 × 55p) + (2,000 × 25p) = £5,500 + £500 = £6,000.00
Employer paid:12,000 × 30p = £3,600.00
Relief claimable:£2,400.00 shortfall. At 40% tax, this is worth about £960.00
Example 3 — Overpaid by employer
An employee drives 5,000 business miles and their employer pays 60p per mile, above the approved rate.
5,000 × 55p = £2,750.00
Employer paid:5,000 × 60p = £3,000.00
Result:The £250.00 excess is taxable and should be reported. At 20% tax that is about £50.00 of tax.
HMRC mileage rates 2026/27
| Vehicle type | First 10,000 miles | Over 10,000 miles |
|---|---|---|
| Cars and vans | 55p per mile | 25p per mile |
| Motorcycles | 24p per mile | 24p per mile |
| Bicycles | 20p per mile | 20p per mile |
| Passenger payment (cars/vans) | up to 5p per passenger per business mile, if the employer pays it | |
The first-10,000-mile rate for cars and vans rose from 45p to 55p from 6 April 2026. Earlier tax years used 45p, which is why the calculator has a tax year option. The 10,000-mile threshold applies to each tax year (6 April to 5 April). The rates cover running costs, so they are not purely fuel reimbursement.
Claiming Mileage Allowance Relief
If your employer pays you less than the approved amount, including nothing, you can claim tax relief on the difference. This isn't a cash refund of the shortfall: it is relief at your tax rate. GOV.UK gives the example that a £60 claim at a 20% rate gives £12 of relief. The relief can't be more than the tax you paid in that year.
How to claim: if you complete a Self Assessment tax return, you must claim through the return. Otherwise you can claim through HMRC's online service or the postal form. For the current tax year HMRC usually adjusts your tax code; for earlier years it may adjust your tax code or issue a refund. Check the current steps and any limits on GOV.UK.
If your employer pays more than the approved rate
If your employer pays you more than the approved amount, the excess counts as taxable income. Your employer is responsible for reporting it through payroll or its benefits reporting, but it is worth checking your payslips if you are paid a generous rate, since an unreported excess can lead to a tax bill later.
Passenger payments
Employers can pay up to 5p per passenger per business mile on top of the vehicle rate when you carry a fellow employee on a journey that is also a business journey for them. It is the employer's choice, and this calculator only shows the amount for information.
What this calculator can't tell you
Your exact tax position
The cash value shown assumes the relief or taxable amount is taxed entirely at the band you select. If it pushes you across a band boundary, part may be taxed at a different rate. Relief also can't exceed the tax you paid that year.
Whether you're self-employed or employed
This calculator is for employees claiming against an employer's payment. Self-employed people claim through Self Assessment using flat-rate simplified expenses or actual costs. See our business and self-employed driving guide.
National Insurance
This calculator covers income tax only. Mileage payments can also interact with National Insurance, so check with HMRC or an accountant if your situation is complex.
Common mistakes
Forgetting the 10,000-mile tier drops the rate
The higher rate only applies to the first 10,000 business miles in the tax year. Anything beyond that drops to 25p per mile.
Not keeping a mileage log
GOV.UK says to keep the dates and mileage of your work journeys, grouped by vehicle type. For each journey, record the reason, the start postcode and the end postcode.
Confusing commuting with business mileage
Travel from home to your normal workplace is commuting and doesn't count, unless you are travelling to a temporary workplace.
Using the wrong year's rate
Claims for earlier tax years use the rates that applied then (45p for the first 10,000 miles before 6 April 2026), so choose the right tax year in the calculator.
How to actually claim
- Keep a mileage log through the year with date, reason, and start and end postcodes for each journey
- Check what your employer already pays using your payslips, so you know your actual shortfall or excess
- If you file Self Assessment, claim in your return
- Otherwise, use HMRC's online service or postal form, and send copies of your mileage logs if asked
- You can claim for the current tax year and the 4 previous tax years, if eligible
How we calculate
Approved amount (cars/vans) = (min(miles, 10,000) × first-tier rate) + (max(0, miles − 10,000) × 25p), where the first-tier rate is 55p for 2026/27 and 45p for 2025/26 and earlier
Approved amount (motorcycles) = miles × 24p · Approved amount (bicycles) = miles × 20p
Employer total = miles × employer's rate per mile
If approved amount > employer total: shortfall = approved − employer total (relief you can claim); estimated value = shortfall × your tax rate
If employer total > approved amount: excess = employer total − approved (taxable); estimated tax = excess × your tax rate
Passenger allowance = passenger miles × 5p (informational only)
Frequently asked questions
What is the HMRC mileage rate for 2026/27?
55p per mile for the first 10,000 business miles in the tax year, then 25p per mile, for cars and vans. Motorcycles are 24p per mile and bicycles 20p. The 55p rate applies from 6 April 2026; the first 10,000 miles were 45p before that.
Can I claim mileage if my employer doesn't pay me anything?
Yes. If your employer pays you nothing for business mileage, you can claim relief on the full approved amount, subject to having paid enough tax in that year.
Is mileage relief a direct cash payment from HMRC?
No. It is relief at your tax rate, so the cash benefit depends on your tax band. For example, £1,000 of relief is worth £200 to a basic-rate taxpayer and £400 to a higher-rate taxpayer.
What happens if my employer pays more than the approved rate?
The excess above the approved amount is taxable and should be reported by your employer. Check your payslips if you are paid a generous rate.
How far back can I claim?
GOV.UK says you can claim for the current tax year and the 4 previous tax years, if you are eligible. Use the rates that applied in each year.
References & data sources
- GOV.UK — Travel — mileage and fuel rates and allowances. The approved mileage rates used in this calculator.
- GOV.UK — Tax relief for employees: vehicles you use for work. Who can claim, how to subtract employer payments, evidence needed.
- GOV.UK — Tax relief for employees. How relief works and how to claim.
- GOV.UK — Expenses and benefits: business travel mileage. Employer rules for mileage payments.
This calculator provides a simplified estimate and is not a substitute for advice from HMRC or a qualified accountant, particularly for claims near a tax band threshold or with a more complex tax position.
Prakash
Prakash is the founder and editor of UK Driving Tools. He maintains the site's calculators and guides and checks the rates and rules they use against official UK sources, such as GOV.UK, the DVLA, HMRC and Transport for London, before publishing.
Pages are drafted with the help of AI tools and then checked by the editor. He isn't a lawyer, accountant or UK-qualified adviser, so every page lists its sources and states what its calculator can't tell you. Nothing on this site is legal or financial advice.
Pages on UK Driving Tools are drafted with the help of AI tools. Before publishing, the figures and rules on each page are checked against the official source named on the page, and calculator examples are tested against the working formula. Pages are updated when rates or rules change. Our Editorial Policy explains the full process, including how to report a mistake.
Spotted a mistake or an out-of-date rate? Let us know and we'll check it against the official source.