Business Mileage Calculator UK 2026 | HMRC Rates

Calculate your HMRC Mileage Allowance Payment (MAP) or Mileage Allowance Relief (MAR) for 2025/26. Whether you are self-employed, an employee claiming for business travel, or a company car driver, this calculator works out the exact amount you can claim based on HMRC approved rates for cars, vans, motorcycles, and bicycles.

HMRC Approved Mileage Rates 2025/26: Car/Van: 45p (first 10,000mi) Car/Van: 25p (over 10,000mi) Motorcycle: 24p Bicycle: 20p Passenger: +5p each

Business Mileage Calculator 2025/26

Total Business Miles -
Miles at Primary Rate -
Miles at Secondary Rate (if car/van over 10,000) -
HMRC Approved Mileage Allowance -
Passenger Allowance (5p/mile x passengers) -
Total HMRC Approved Amount -
Employer Pays -
Shortfall (MAR claimable) -
Tax Relief / Tax Saving -
How to Claim -

HMRC Mileage Rates 2025/26 - Complete Guide

The HMRC Approved Mileage Allowance Payment (MAP) scheme allows employees and self-employed people to claim a flat rate per mile for using their own vehicle on business trips. If your employer pays you at or above the HMRC rate, there is no tax to pay on the mileage payment. If your employer pays less (or nothing), you can claim Mileage Allowance Relief (MAR) for the difference.

HMRC Mileage Rates Table 2025/26

Vehicle TypeFirst 10,000 MilesOver 10,000 Miles
Car45p per mile25p per mile
Van45p per mile25p per mile
Motorcycle24p per mile24p per mile
Bicycle20p per mile20p per mile
Passenger (per person)+5p per mile+5p per mile

These rates have been unchanged since 2011. HMRC has faced criticism for not updating them to reflect rising fuel and running costs, particularly after the significant fuel price increases of 2022-2024. However, they remain the official approved rates for all vehicle types in 2025/26.

Self-Employed vs Employee Mileage Claims

AspectSelf-EmployedEmployee
Claim againstTrading profits (reduces income tax and potentially NI)Employment income (reduces income tax only)
How to claimSelf Assessment tax returnP87 form or Self Assessment
When to claimBy 31 January following tax year endP87 within 4 years; SA by 31 January
Threshold for Self AssessmentAlways on SAP87 for under £2,500, SA for over £2,500
Can mix with actual costs?No - must use one method throughoutN/A - employees use MAP/MAR only
Switching methodsCan switch at start of new vehicleN/A

Mileage Allowance Relief (MAR) - How It Works

Mileage Allowance Relief (MAR) is the tax relief available to employees when their employer pays them less than the HMRC approved MAP rate for business mileage. The relief is calculated on the difference between what HMRC allows and what your employer actually pays.

Example: You drive 8,000 business miles in your own car. HMRC allows 45p/mile = £3,600. Your employer pays 30p/mile = £2,400. The shortfall is £1,200. As a basic rate taxpayer, your MAR tax relief = £1,200 x 20% = £240 reduction in your tax bill.

Mileage Log: What Records to Keep

HMRC expects taxpayers to maintain a contemporaneous mileage log for all business journeys. A good mileage log should record:

There are many smartphone apps available that automatically track and log business mileage using GPS. These records must be kept for at least 5 years after the Self Assessment filing deadline for the relevant tax year.

Business vs Private Mileage - How to Split

For self-employed people who use the same vehicle for both business and personal journeys, only the business proportion of running costs is deductible. If you use the mileage rate method, you only count genuine business miles. If you use actual costs (fuel, insurance, depreciation), you must calculate the business percentage and apply it to total costs.

Your regular commute from home to your permanent workplace is not a business journey. Journeys from home to client sites, between offices, to training, or to other business locations are deductible business mileage. If you have no fixed workplace (for example, you visit different client sites each day), you may be able to claim from home as your "base".

Advisory Fuel Rates - Company Cars vs MAP

Advisory Fuel Rates (AFRs) are different from MAP rates and apply only to company car drivers reclaiming fuel costs from their employer. AFRs are updated quarterly by HMRC and vary by engine size and fuel type. They are not used for MAP or MAR calculations - those use the fixed 45p/25p rates regardless of fuel type. Employees with company cars can use AFRs to reclaim fuel costs but cannot claim the 45p MAP rate as they don't own the vehicle.

Electric Vehicles and Mileage Claims

The 45p per mile rate applies equally to electric vehicles for 2025/26. This means EV drivers benefit considerably more from the mileage rate than petrol or diesel drivers, as the actual cost of electricity per mile is much lower (typically 3-8p per mile for home charging) while the HMRC rate remains at 45p. For Advisory Fuel Rates on company EVs, HMRC uses a separate AER (Advisory Electricity Rate) of around 7-9p per mile.

Passenger Mileage Rate

If you carry fellow employees as passengers on business journeys in your own vehicle, you can claim an additional 5 pence per mile per passenger on top of the standard mileage rate. This is only available where the passengers are also employees of the same organisation travelling on business. You cannot claim the passenger rate for carrying family members, clients, or customers.

Frequently Asked Questions

What is the HMRC mileage rate for cars in 2025/26?

The HMRC Approved Mileage Allowance Payment rate for cars and vans is 45p per mile for the first 10,000 business miles in a tax year, and 25p per mile for every mile over 10,000. These rates have remained unchanged since 2011. The motorcycle rate is 24p per mile and the bicycle rate is 20p per mile, with no threshold change.

What is Mileage Allowance Relief (MAR)?

Mileage Allowance Relief allows employees to claim tax relief when their employer pays less than the HMRC approved mileage rate. If your employer pays you 30p/mile but HMRC allows 45p/mile, you can claim tax relief on the 15p/mile difference. For a 20% taxpayer, this means a tax saving of 3p per mile (15p x 20%). For a 40% higher rate taxpayer, the saving is 6p per mile.

Can self-employed people claim mileage?

Yes. Self-employed people using their own vehicle for business can claim the full HMRC mileage rate (45p/mile for the first 10,000 miles, 25p thereafter) as a business expense on their Self Assessment tax return. This is instead of claiming actual vehicle costs like fuel, insurance, and depreciation - you must choose one method for each vehicle and stick with it as long as you own that vehicle.

What records do I need to keep for mileage claims?

HMRC expects a contemporaneous mileage log recording: date of journey, starting location, destination, business reason for the journey, and total miles. Keep opening and closing odometer readings for the year. Records must be kept for at least 5 years after the Self Assessment deadline. Digital logs from smartphone GPS apps are acceptable if they record all the required information.

Is commuting classed as a business journey?

No. Your regular commute from home to your normal place of work is not a business journey and no mileage claim is allowed. Business journeys are trips made in the performance of your duties - visiting clients, travelling between offices, attending business meetings or training. If you work from home officially, journeys to client sites or offices can be claimed as they start from your business base.

What is the motorcycle mileage rate?

The HMRC Approved Mileage rate for motorcycles is 24p per mile, regardless of total mileage - there is no reduced rate after 10,000 miles like there is for cars. For bicycles used for business, the rate is 20p per mile. Both rates have remained unchanged for many years.

How do I claim mileage as an employee?

If your employer doesn't reimburse mileage or pays less than the HMRC approved rate, claim MAR using form P87 (for up to £2,500 of expenses) or through Self Assessment for larger amounts. You'll need your mileage log to support the claim. HMRC will adjust your tax code to give relief, or repay tax already paid. Claims can be made going back 4 tax years.

MB
Mustafa Bilgic

UK Tax & Employment Finance Specialist. Mustafa provides practical HMRC-aligned guidance on mileage claims, business expenses, and self-employed tax deductions. Updated: 20 February 2026.

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