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Mileage Allowance Calculator (HMRC)

Calculates the tax-free mileage allowance you can claim from your employer or the tax relief due from HMRC for business travel using your own vehicle.

Your details

Select the type of vehicle used for business travel.

Total number of miles you have driven/ridden for business purposes in the current tax year.

The amount your employer pays you per business mile, in pounds. For 45 pence, enter 0.45. Enter 0 if you receive no payment.

Result

Potential Tax Relief Due £0.00

If your employer pays you less than the HMRC approved rate, you may be able to claim tax relief on the difference. This is the amount on which you can claim tax relief from HMRC via Self Assessment.

How it is calculated

HMRC Approved Allowance The total tax-free amount you could be paid, based on HMRC's Approved Mileage Allowance Payment (AMAP) rates for the current tax year.
£3,825.00
Total Paid by Employer The total amount your employer has paid or will pay you for the business miles.
£3,825.00
Allowance Due from Employer The additional amount your employer could pay you tax-free, up to the HMRC approved limit. This is the amount you could request from your employer.
£0.00
Keep in mind
  • This calculator is based on HMRC's Approved Mileage Allowance Payment (AMAP) rates for the tax year 2026/27 (starting 6 April 2026). Rates are subject to change; always check the latest HMRC guidance.
  • The 'Potential Tax Relief Due' is an estimate of the amount on which you can claim tax relief. The actual tax relief you receive depends on your income tax rate (e.g., 20% or 40%). You must claim this relief from HMRC via a Self Assessment tax return or by contacting HMRC directly.
  • If your employer pays you more than the approved rate, the excess is considered a taxable benefit and should be reported on your P11D form.
  • This calculator does not include the additional 5p per mile per passenger that can be claimed for carrying business passengers in a car or van. You should add this separately to your claim.

Indicative result, calculated from the details and the rules listed below. It does not replace an official calculation or advice from a professional.

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Letter Request Claiming Travel Expenses from an Employer
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Mileage Allowance Calculator for UK Employees

If you use your own vehicle for business travel, you are entitled to claim a tax-free mileage allowance from your employer. If your employer pays you less than the government-approved rates, you may be able to claim tax relief on the difference from HMRC. This calculator helps you determine the correct amount based on HMRC's Approved Mileage Allowance Payments (AMAP).

How the Mileage Allowance Works

HMRC sets Approved Mileage Allowance Payment (AMAP) rates each tax year. These rates represent the maximum amount per mile your employer can pay you tax-free for business travel using your own vehicle. The rates cover the costs of running your vehicle, such as fuel, insurance, and maintenance.

If your employer pays you at or below these AMAP rates, the payment is tax-free. If they pay you more, the excess is treated as a taxable benefit. If they pay you less, you can claim tax relief from HMRC on the difference between what they paid and the AMAP rate.

HMRC Approved Rates (2026/27 Tax Year)

  • Cars and vans: 45p per mile for the first 10,000 business miles in a tax year, then 25p per mile thereafter.
  • Motorcycles: 24p per mile for all business miles.
  • Bicycles: 20p per mile for all business miles.
  • Passenger payments (cars/vans): An additional 5p per mile per passenger can be claimed for carrying business passengers. This calculator does not include this payment; see the FAQ for details.

Example Calculation

Sarah uses her own car for business travel. In the 2026/27 tax year, she drives 12,000 business miles. Her employer pays her 30p per mile.

  • HMRC Approved Allowance: For the first 10,000 miles: 10,000 * £0.45 = £4,500. For the remaining 2,000 miles: 2,000 * £0.25 = £500. Total approved allowance = £5,000.
  • Total Paid by Employer: 12,000 * £0.30 = £3,600.
  • Allowance Due from Employer: Sarah's employer could pay her an additional £1,400 (£5,000 - £3,600) tax-free. She could formally request this amount.
  • Potential Tax Relief Due: Since her employer paid less than the approved rate, Sarah can claim tax relief on the £1,400 difference from HMRC. The actual tax relief amount depends on her income tax rate (e.g., 20% of £1,400 = £280).

Claiming Your Allowance or Tax Relief

First, speak to your employer. They may agree to increase your mileage payments to the AMAP rate. If they do not, or if you are self-employed, you can claim tax relief from HMRC. You will need to keep accurate records of your business journeys, including dates, destinations, purposes, and mileages.

To formalize a claim with your employer, consider using a Letter Requesting Claiming Travel Expenses from an Employer. This document helps you present your mileage claim professionally, detailing the miles travelled, the applicable rate, and the total amount due. The calculator can prefill the claim amount for you.

Frequently Asked Questions

This section addresses common queries about mileage allowances and tax relief in the UK.

Frequently asked questions

What counts as a business mile?

A business mile is travel you undertake in the performance of your duties, or for necessary travel between different places of work. Commuting from home to a permanent workplace is not considered business travel.

Can I claim if I use a company car?

No. The Approved Mileage Allowance Payments (AMAP) scheme only applies when you use your own private vehicle. If you use a company car, you cannot claim mileage allowance, but you may be able to claim for fuel costs incurred for business travel under different rules.

What if I carry passengers on business trips?

You can claim an additional 5p per mile per passenger for business passengers carried in your car or van. This calculator does not include passenger payments. You should add this separately to your claim.

How do I claim tax relief from HMRC?

If you complete a Self Assessment tax return, you can claim the relief there. If you don't complete a return, you can contact HMRC by phone or post, providing details of your business miles and the payments received from your employer.

Are the rates different for electric vehicles?

No. HMRC's AMAP rates are the same for all cars and vans, regardless of fuel type (petrol, diesel, electric, hybrid). The rates are designed to cover all running costs.

What records do I need to keep?

You should keep a mileage log with the date of each journey, the start and end locations, the purpose of the trip, and the total miles. You should also keep records of any payments received from your employer for mileage.

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