Mileage Allowance Calculator UK

HMRC Approved Mileage Rates 2025/26

Approved Mileage Allowance Payments (AMAP) - Your Own Vehicle

Advisory Fuel Rates (AFR) - Company Cars

These rates apply from 1 February 2026:

What Counts as Business Mileage?

Qualifying Business Travel

• Travel to temporary workplaces (expected to last under 24 months)
• Visiting clients or customers at their premises
• Attending meetings at different locations
• Travel between different workplaces during the day
• Home to office travel IF you work from home as your main base
• Training courses at locations other than your normal workplace

NOT Qualifying (Ordinary Commuting)

• Daily travel from home to your permanent workplace
• Travel to a workplace you attend regularly
• Any workplace you've been attending for over 24 months

How to Use This Mileage Allowance Calculator

Our free mileage allowance calculator helps you work out exactly how much you can claim for business travel in your own vehicle. Follow these simple steps to get an accurate result for the 2025/26 tax year.

Step 1: Choose Your Vehicle Type

Select whether you are using a car or van, motorcycle, or bicycle. The HMRC approved mileage rates differ by vehicle type. Cars and vans share the same rates (45p/25p), while motorcycles (24p) and bicycles (20p) have flat rates regardless of distance.

Step 2: Enter Your Business Miles

Input the total number of business miles you have driven (or plan to drive) during this tax year. Remember, only genuine business travel qualifies. Your daily commute to a permanent workplace does not count. If you have already claimed some miles at the 45p rate this tax year, enter that figure in the "Miles Already Claimed" field so the calculator correctly applies the 25p rate to miles over 10,000.

Step 3: Review the Results

The calculator will show a breakdown of miles at the higher rate (45p) and lower rate (25p), along with your total mileage allowance. If you use a company car, switch to the "Company Car (AFR)" tab and select your fuel type and engine size to see Advisory Fuel Rates instead.

Step 4: Calculate Your Tax Relief (Optional)

If your employer pays you less than the HMRC approved rate (or nothing at all), use the "Tax Relief (MAR)" tab to calculate your Mileage Allowance Relief. Enter your total business miles, the amount your employer paid, and your marginal tax rate. The calculator shows the shortfall and the tax relief you can reclaim from HMRC.

Understanding HMRC Mileage Allowance Payments

Mileage Allowance Payments (MAPs) are amounts paid to employees who use their own vehicles for business travel. HMRC sets Approved Mileage Allowance Payments (AMAPs) to simplify the process. Here is what you need to know for the 2025/26 tax year.

The Two-Tier Rate System for Cars and Vans

For employees using their own car or van, HMRC applies a two-tier rate structure. The first 10,000 business miles in a single tax year (6 April to 5 April) are paid at 45p per mile. Any miles beyond 10,000 in the same tax year are paid at the reduced rate of 25p per mile. This threshold resets at the start of each new tax year.

The 45p rate is designed to cover not just fuel but also wear and tear, insurance, road tax, servicing, and depreciation of the vehicle. The lower 25p rate acknowledges that many of these costs are relatively fixed regardless of additional mileage.

Flat Rates for Motorcycles and Bicycles

Motorcycles attract a flat rate of 24p per mile for all business miles, with no threshold. Bicycles receive 20p per mile. These rates have remained unchanged since 2011, and there is ongoing debate about whether they adequately reflect current costs.

Passenger Payments

If you carry a fellow employee as a passenger on a business journey, your employer can pay an additional 5p per mile per passenger, tax-free. This is known as the passenger mileage rate and applies to all vehicle types. You cannot claim this yourself; it must be paid by your employer.

Advisory Fuel Rates for Company Cars

If you drive a company car for business purposes, different rates apply. Advisory Fuel Rates (AFRs) are set by HMRC and updated quarterly. They vary by engine size and fuel type (petrol, diesel, LPG, or electric). From February 2026, electric vehicles attract a rate of 9p per mile. Use the "Company Car (AFR)" tab of our calculator to find the correct rate for your vehicle.

Worked Examples: Mileage Allowance in Practice

Example 1: Sales Representative Driving 8,000 Business Miles

Sarah is a sales representative who uses her own car for client visits. In the 2025/26 tax year, she drives 8,000 business miles. Her employer pays her the full HMRC rate.

• All 8,000 miles are within the 10,000 threshold, so the 45p rate applies
• Mileage allowance: 8,000 x 45p = £3,600
• This is paid tax-free by her employer
• No further claim needed as she receives the full HMRC rate

Example 2: Care Worker Driving 14,000 Business Miles

James is a domiciliary care worker visiting clients across his local authority area. He drives 14,000 business miles this tax year, but his employer only pays 30p per mile.

• First 10,000 miles at 45p = £4,500
• Remaining 4,000 miles at 25p = £1,000
• HMRC approved total: £5,500
• Employer pays: 14,000 x 30p = £4,200
• Shortfall: £5,500 - £4,200 = £1,300
• As a basic rate (20%) taxpayer, James can claim Mileage Allowance Relief of £1,300 x 20% = £260 back from HMRC

Example 3: Contractor With a Company Car

Emma drives a company-provided petrol car with a 1,600cc engine. She drives 3,000 business miles and pays for her own fuel. Her employer reimburses her using Advisory Fuel Rates.

• AFR for petrol 1401-2000cc (from February 2026): 15p per mile
• Fuel reimbursement: 3,000 x 15p = £450
• This is paid tax-free as it matches the HMRC advisory rate

How to Claim Mileage Allowance Relief From HMRC

If your employer pays you less than the HMRC approved rate, or pays nothing at all for using your own vehicle on business, you are entitled to claim the difference as Mileage Allowance Relief (MAR). Here is the process.

Claiming via Self Assessment

If you already complete a Self Assessment tax return (for example, because you are self-employed or earn over £100,000), include your mileage claim in the employment section. You will need to calculate the shortfall between the HMRC approved amount and what your employer paid, and enter this as an allowable expense.

Claiming via Form P87

If you are an employee who does not file a Self Assessment return, and your total employment expenses (including mileage) are under £2,500, you can claim using HMRC form P87. This can be submitted online through your Personal Tax Account or by post. You will need your employer's PAYE reference and details of your business journeys.

Record-Keeping Requirements

HMRC requires you to keep a detailed mileage log for at least six years. For each journey, record the date, starting point, destination, purpose of the trip, and miles driven. A simple spreadsheet or mileage tracking app is sufficient. Without proper records, HMRC may reject your claim or ask for evidence during an enquiry.

Time Limits for Claims

You can claim mileage allowance relief for up to four previous tax years. So if you have been underpaid for business mileage in earlier years and never claimed, you may still be able to recoup the tax relief. Contact HMRC or submit a P87 for each relevant year.

Frequently Asked Questions

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