Business Mileage Calculator (HMRC Rates)

HMRC Approved Mileage Allowance Payments (AMAPs) for 2026/27: Cars and vans — 45p per mile for first 10,000 miles, 25p per mile thereafter. Motorcycles — 24p per mile. Bicycles — 20p per mile. These rates haven't changed since April 2011.

Keep a mileage log (date, destination, business purpose, miles). Ask your employer to pay the HMRC rate tax-free. If they pay less than the rate, claim MAR (Mileage Allowance Relief) via your Self Assessment or by contacting HMRC. If they pay more, the excess is taxable.

Yes — self-employed people can deduct either the HMRC flat rates (45p/25p per mile) as a simplified expense, OR actual vehicle costs (fuel, insurance, servicing, depreciation) apportioned for business use. You cannot switch methods once chosen for a vehicle.

Business journeys: client/customer visits, travelling between business locations, supplier visits, training related to work, attending meetings. NOT business mileage: ordinary commuting to your regular workplace, private journeys, journeys with a mixed business/personal purpose.

The 45p/25p rates have been frozen since April 2011 despite significant fuel and running cost increases. RAC Foundation research shows actual motoring costs are now 20–30% higher than the HMRC rate compensates for, effectively meaning drivers who claim mileage are often under-compensated.

Yes — but amounts above the approved rate become a taxable benefit-in-kind (BIK) for the employee. Employers must report excess payments on P11D forms. Some employers voluntarily pay higher rates and handle the tax implication.

A mileage log records: date, starting point, destination, business purpose, and miles. HMRC can request evidence of business mileage during an investigation. Mobile apps (TripLog, MileIQ, Driversnote) automate log-keeping — highly recommended.

HMRC introduced an Advisory Electricity Rate (AER) for company car EVs at 7p/mile (2026/27). For personally-owned EVs, the standard 45p/25p AMAP rate still applies — but HMRC is under pressure to review this as EVs have much lower fuel costs.

Yes — if you carry a work colleague in your own vehicle, you can claim an additional 5p per passenger per business mile (Passenger Payments exemption). Keep a record of passengers carried per journey.

Tax relief is at your marginal rate. A basic-rate taxpayer (20%) claiming £3,000 in mileage relief saves £600 in tax. A higher-rate taxpayer (40%) saves £1,200. Self-employed people reduce their taxable profits by the full mileage amount.

Claim Mileage Allowance Relief (MAR) via: Self Assessment (if you submit a return) — include on employment page. Or HMRC form P87 for employees not in Self Assessment, or via the HMRC app if eligible. Claims can be backdated 4 years.

For high-mileage low-cost vehicles, HMRC flat rate (45p) often exceeds actual costs — use flat rate. For expensive electric vehicles or high fuel cost cars, actual costs (including depreciation) may be more tax efficient. Calculate both — once you choose, stick with it for that vehicle.