The Mileage Calculator is a tool designed to help UK businesses and self-employed individuals calculate their HMRC mileage allowance claims and potential tax savings. Those who frequently use their personal vehicles for business travel can benefit from understanding the exact mileage allowance they are entitled to claim back.
How Mileage Calculator works in 2026
The Mileage Calculator uses the HMRC's Approved Mileage Allowance Payments (AMAP) rates to compute claimable mileage costs. For the tax year 2026/2027, the rate for cars and vans is 45p per mile for the first 10,000 miles and 25p per mile thereafter. Motorcycles are computed at 24p per mile. These rates are set by HMRC to cover the costs of fuel, wear and tear, and other vehicle expenses incurred during business travel. By inputting your mileage, the calculator estimates your total claimable amount, which can then be deducted from your taxable income.
It's important to note that companies can pay employees more than the AMAP rates, but any excess is considered a taxable benefit. Conversely, if an employer pays less than these rates, you can claim Mileage Allowance Relief for the difference. This ensures you receive the full benefit of the HMRC-approved rates, reducing your taxable income accordingly.
When to use Mileage Calculator
Use the Mileage Calculator in the following scenarios:
- Scenario 1: You're a self-employed individual tracking your business mileage for tax purposes.
- Scenario 2: You work for a company that reimburses at a lower rate than HMRC's approved rates.
- Scenario 3: A small business owner managing mileage expenses for employee travel.
- Scenario 4: An employee needing to calculate Mileage Allowance Relief for a tax return.
Key UK rates / thresholds for 2026
These are the applicable rates and thresholds for mileage in 2026:
| What | Rate / threshold | Notes |
|---|---|---|
| Cars and vans (first 10,000 miles) | 45p per mile | Standard rate set by HMRC |
| Cars and vans (after 10,000 miles) | 25p per mile | Reduced rate after initial threshold |
| Motorcycles | 24p per mile | Flat rate for all mileage |
| Bicycles | 20p per mile | Encourages cycling for business travel |
Worked example
Consider Jane, a freelance consultant who drives 12,000 business miles in her car over the tax year. For the first 10,000 miles, she claims 45p per mile, totalling £4,500. For the remaining 2,000 miles, she claims 25p per mile, adding £500. Her total claimable amount is £5,000. This sum is deducted from her taxable income, effectively lowering her tax liability.
Common mistakes
- Not keeping accurate mileage logs. Use a logbook or app to track each trip's date, purpose, and miles driven.
- Claiming for private travel. Only business-related journeys qualify for mileage claims.
- Overestimating mileage. Ensure your claimed miles match your records and are justifiable.
- Forgetting to claim Mileage Allowance Relief. If reimbursed at lower rates, claim the difference on your tax return.
Related calculations
Users often need to calculate fuel costs alongside mileage claims to understand overall travel expenses. Understanding how to calculate input VAT on fuel costs can also be relevant for VAT-registered businesses. Additionally, comparing company car tax liabilities with personal vehicle usage can be valuable for decision-making.
What HMRC checks
HMRC expects you to keep detailed mileage records for at least five years. Records should include dates, destinations, reasons for travel, and mileage. Inaccurate or inconsistent logs may trigger questions or audits. Always ensure your claims align with your records and the HMRC guidelines.
Bottom line
The Mileage Calculator is a valuable tool for accurately determining your HMRC mileage allowance claims. By keeping meticulous records and using the calculator for your business travel, you can maximise your tax savings and ensure compliance with HMRC requirements. Regularly reviewing your mileage and claims can help you manage travel expenses effectively.