Business Mileage Allowance Calculator
Choose whether you are an employee or self-employed, then enter your business miles. You see the approved amount, anything reportable, and the tax relief on a shortfall.
This is an estimate and not advice. Scotland and Wales use the same mileage rates. Company car fuel rates are different and are not covered.
Worked examples
An employee driving 12,000 miles
2026/27, employer pays £4,000, basic rate taxpayer
£6,000 approved
10,000 x 55p + 2,000 x 25p = £6,000. The £2,000 shortfall earns tax relief of £400 at 20%.
A self-employed driver, 11,000 miles
Car, 2026/27
£5,750
10,000 x 55p = £5,500 and 1,000 x 25p = £250, the same as the GOV.UK example.
A motorcycle courier, 3,000 miles
Self-employed, motorcycle
£720
Motorcycles are 24p a mile for every mile, with no change after 10,000.
About Business Mileage Allowance Calculator
If you use your own car, van, motorcycle or bicycle for work, HMRC sets the amount per mile that can be given or claimed without any tax problem. For a car or van the rate from 6 April 2026 is 55p a mile for the first 10,000 business miles in the tax year and 25p a mile after that. Motorcycles are 24p and bicycles are 20p. Before 6 April 2026 the first 10,000 miles were 45p.
What you do with the figure depends on who you are. If you are an employee, your employer can pay up to the approved amount with no tax to pay. If it pays less, you can claim tax relief on the shortfall at your tax rate, and if it pays more, the extra is taxable. If you are self-employed, you can claim the same flat rates for cars, vans and motorcycles instead of keeping receipts for fuel, insurance and repairs. This calculator handles both, the tax year change, miles already claimed and passenger payments.
How to use Business Mileage Allowance Calculator
- Choose whether you are an employee or self-employed, then your vehicle and the tax year.
- Enter your business miles for the year and any miles you have already claimed this tax year.
- If you are an employee, enter what your employer pays you and your highest tax rate.
- Read the approved amount, anything above it that is taxable, and the tax relief on any shortfall.
Common uses
- Checking a mileage payment from an employer
- Claiming tax relief when the employer rate is too low
- Working out the self-employed mileage claim for a tax return
- Budgeting travel costs for a mobile team
Sources
- GOV.UK: Rates and thresholds for employers 2026 to 2027, employee vehicles
- GOV.UK: Simplified expenses, vehicles
- GOV.UK: Passenger payments
Last reviewed 18 October 2026.
Frequently asked questions
What are the mileage rates for 2026/27?
For cars and vans, 55p a mile for the first 10,000 business miles in the tax year and 25p a mile after that. For motorcycles 24p a mile, and for bicycles 20p a mile.
Why is the National Insurance figure different from the tax figure?
For National Insurance, the car rate for the top band applies to all business miles, so the approved amount keeps rising at 55p after 10,000 miles. For tax, the rate drops to 25p after 10,000.
Can I claim mileage as self-employed and also fuel?
No. If you use the flat rate for a vehicle you cannot also claim its running costs or capital allowances. You can still claim parking and tolls on top.
What are passenger payments?
If you carry a colleague on a business trip in your car, your employer can pay you up to 5p a mile for each passenger with no tax to pay. There is no tax relief if they pay less.
Does commuting count?
No. Only business journeys count. Travel between your home and your normal place of work is commuting, so it does not qualify.