HMRC Mileage Allowance Calculator UK
This mileage expense calculator works out your HMRC mileage allowance claim using the approved 45p and 25p per mile rates for the 2025/26 tax year. If you use your own car, van, motorcycle or bicycle for business travel, you can claim tax-free mileage payments from your employer or claim tax relief if they pay less than the approved rate. Enter the number of business miles driven this tax year and your vehicle type to see the total allowance, plus the tax relief you could receive at basic and higher rates. This tool is useful for employees who drive between work sites, visit clients or attend meetings away from their permanent workplace, as well as self-employed workers using the simplified expenses method.
Understanding HMRC Mileage Allowance Rates
HMRC sets approved mileage allowance payment (AMAP) rates that cover the cost of fuel, wear and tear, insurance and servicing when you use your own vehicle for business. For cars and vans, the rate is 45p per mile for the first 10,000 business miles in the tax year, dropping to 25p per mile after that. Motorcycles attract a flat rate of 24p per mile and bicycles 20p per mile. You can also claim an additional 5p per mile for each passenger you carry on a business journey. These rates have not changed for several years, and the 45p rate is intended to be a simplified alternative to claiming actual vehicle running costs.
How to Claim Mileage Tax Relief
If your employer pays you less than the approved rate, or nothing at all, you can claim tax relief on the difference. Employees claim using HMRC form P87 for claims under £2,500, or through self-assessment for larger amounts. Self-employed workers claim through the simplified expenses section of their tax return. You must keep a detailed mileage log showing the date, destination, purpose and distance of each business journey. Full guidance on claiming is available on the GOV.UK mileage and vehicle expenses page.
Maximising Your Mileage Claim
Many employees miss out on legitimate mileage claims simply because they do not keep records. Start logging every business journey from the beginning of the tax year, including trips to temporary workplaces, client sites and training venues. Remember that ordinary commuting between home and your permanent workplace does not count. If you are self-employed, you can choose between mileage rates and actual vehicle costs, but once you pick a method for a vehicle, you must stick with it. Use our self-employed tax calculator to see how mileage deductions reduce your overall tax bill, or check your take home pay to understand how claiming relief through your tax code increases your monthly income.
No. HMRC does not allow claims for ordinary commuting. Business mileage covers travel to temporary workplaces, client visits and between work sites.
If your employer pays less than approved rates, claim the difference via P87 form or self-assessment. Keep a detailed mileage log.
Yes, using the simplified expenses method on your self-assessment return. Same 45p/25p rates apply.
No. The approved rate covers all running costs. You must keep an accurate mileage log instead.
Mileage rates are simpler. Actual costs may give a higher claim for expensive vehicles. Employees must use HMRC rates; self-employed can choose.
This calculator provides estimates for guidance only. Results use 2025/26 HMRC rates. This is not financial, legal or professional advice. For regulated financial advice, speak to a qualified financial adviser.