UK Mileage Calculator 2026/27
Last updated: May 2026 — now showing the new 55p HMRC rate
Calculate your business mileage allowance using the new 2026/27 HMRC approved rates — 55p per mile for the first 10,000 business miles — plus fuel costs for any journey and your vehicle's MPG efficiency.
Mileage Calculator
Calculate the fuel cost for any journey using current UK fuel prices and your vehicle's efficiency.
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Calculate your tax-free mileage allowance using the new HMRC approved rates for 2026/27 (55p per mile for the first 10,000 business miles).
HMRC Approved Mileage Allowance Payments (AMAPs) 2026/27
The HMRC mileage rates, officially known as Approved Mileage Allowance Payments (AMAPs), allow employees and self-employed individuals to claim tax relief when using their own vehicle for business travel. These rates are designed to cover fuel costs, wear and tear, insurance, and general running costs. From 6 April 2026, the rate for cars and vans rose from 45p to 55p per mile for the first 10,000 business miles — the first increase since the 45p rate was introduced in 2011/12.
| Vehicle Type | First 10,000 Miles | Over 10,000 Miles | Notes |
|---|---|---|---|
| Cars & Vans | 55p per mile | 25p per mile | New 2026/27 rate (was 45p); same regardless of engine size or fuel |
| Motorcycles | 24p per mile | 24p per mile | Flat rate for all miles |
| Bicycles | 20p per mile | 20p per mile | Flat rate for all miles |
| Passengers | 5p per mile | 5p per mile | Per passenger, cars only |
Important: The 10,000 Mile Threshold
The 10,000-mile threshold applies per tax year (6 April to 5 April) and resets annually. Using the new 2026/27 rate, if you drive 15,000 business miles in a year:
- First 10,000 miles × 55p = £5,500
- Remaining 5,000 miles × 25p = £1,250
- Total claimable: £6,750
Under the old 45p rate the same 15,000 miles claimed £5,750, so the 2026/27 increase is worth an extra £1,000 in this example (10p more on each of the first 10,000 miles).
2026/27 Mileage Rate Increase: 45p Rises to 55p
On 6 April 2026, HMRC increased the Approved Mileage Allowance Payment (AMAP) rate for cars and vans from 45p to 55p per mile for the first 10,000 business miles in a tax year. This is the first change to the car and van rate since 2011/12, when the 45p rate was introduced — it stood still for 15 years while fuel, insurance and running costs climbed, so the uplift is significant for anyone who drives their own vehicle for work. The rate for miles above 10,000 stays at 25p, and the motorcycle (24p) and bicycle (20p) rates are unchanged.
| Vehicle type | 2011/12 – 2025/26 (old) | 2026/27 (new) | Over 10,000 miles |
|---|---|---|---|
| Cars & vans | 45p / mile | 55p / mile | 25p / mile (unchanged) |
| Motorcycles | 24p / mile | 24p / mile | 24p / mile (unchanged) |
| Bicycles | 20p / mile | 20p / mile | 20p / mile (unchanged) |
| Passenger payment | +5p / mile | +5p / mile | +5p / mile (unchanged) |
What the increase is worth
The extra 10p per mile applies only to the first 10,000 business miles in the tax year, so the maximum extra benefit is capped at £1,000 a year (10,000 × 10p). Here is how the new rate compares to the old one at common annual mileages:
| Business miles in the year | Old claim (45p / 25p) | New 2026/27 claim (55p / 25p) | Extra tax-free |
|---|---|---|---|
| 1,000 miles | £450 | £550 | +£100 |
| 5,000 miles | £2,250 | £2,750 | +£500 |
| 10,000 miles | £4,500 | £5,500 | +£1,000 |
| 15,000 miles | £5,750 | £6,750 | +£1,000 |
| 20,000 miles | £7,000 | £8,000 | +£1,000 |
Worked example: a sales rep doing 12,000 miles
Imagine a self-employed sales consultant who drives 12,000 qualifying business miles in 2026/27:
- First 10,000 miles × 55p = £5,500
- Next 2,000 miles × 25p = £500
- Total mileage allowance: £6,000 tax-free
Under the old 45p rate the same 12,000 miles produced £5,000, so the consultant is £1,000 better off. A basic-rate (20%) taxpayer claiming this through Self Assessment effectively reduces their tax bill by up to £1,200 (£6,000 × 20%), while a higher-rate (40%) taxpayer saves up to £2,400.
Check your internal rate hasn't drifted
If you run a business or process expenses, make sure mileage reimbursements have moved from 45p to 55p. If you pay employees more than 55p the excess is taxable and reportable on form P11D; if you pay less, employees can claim Mileage Allowance Relief on the shortfall. The 55p rate applies to electric cars too — HMRC does not set a separate, lower AMAP rate for EVs.
How to Claim Business Mileage in the UK
For Employees
If your employer reimburses you at less than the HMRC approved rate (or not at all), you can claim tax relief on the difference:
- Through your employer: Ask for reimbursement through expenses or payroll
- Using form P87: For claims under £2,500 per tax year
- Self Assessment: For claims over £2,500 or if you already file a tax return
For Self-Employed
Self-employed individuals have two options for claiming vehicle expenses:
Simplified Expenses
Use HMRC flat rates. No need to track actual costs. Cannot switch back to actual costs later.
Actual Costs
Claim business proportion of fuel, insurance, repairs, tax. More complex but can be higher.
What Records Do You Need?
HMRC requires a contemporaneous mileage log for all business journeys. Your records should include:
| Required Information | Example |
|---|---|
| Date of journey | 15 May 2026 |
| Start location | Home office, Manchester |
| Destination | Client meeting, Leeds |
| Business purpose | Project consultation with ABC Ltd |
| Miles travelled | 86 miles (round trip) |
| Passengers (if any) | 1 colleague (John Smith) |
What Counts as Business Mileage?
Claimable Business Mileage
- Travel to client or customer sites
- Visiting temporary workplaces
- Travel between different work locations
- Attending business meetings
- Training courses at other locations
- Business-related errands
- Site visits and inspections
NOT Claimable
- Commuting to your regular workplace
- Personal trips during work hours
- Travelling to collect personal items
- Home to permanent workplace journeys
- Shopping trips (even in work vehicle)
- Travel to lunch or social events
Temporary Workplace Rule
A workplace is "temporary" if you're there for less than 24 months and it's not your regular base. Travel to temporary workplaces IS claimable, even if it seems like commuting. Examples include contractors on fixed-term projects or employees seconded to different offices.
Frequently Asked Questions
For the 2026/27 tax year, HMRC approved mileage rates are: Cars & Vans - 55p per mile for the first 10,000 business miles, then 25p per mile thereafter (the rate rose from 45p on 6 April 2026). Motorcycles - 24p per mile for all business miles. Bicycles - 20p per mile for all business miles. You can also claim an additional 5p per mile for each business passenger carried in a car.
Self-employed individuals claim mileage through their Self Assessment tax return using either simplified expenses (HMRC rates) or actual costs. Employees can claim through their employer's expenses system, or if not reimbursed at the full HMRC rate, via form P87 (for claims under £2,500) or Self Assessment (for larger claims). Keep a detailed mileage log as evidence.
No, you cannot claim mileage for travelling between your home and regular permanent workplace - this is considered ordinary commuting. However, travel to temporary workplaces (where you expect to work for less than 24 months) IS claimable as business mileage. If you work from home and have no permanent workplace, travel to client sites or meetings is claimable.
HMRC requires a contemporaneous mileage log showing: the date of each journey, start and end locations, the business purpose of the trip, total miles travelled, and any passengers carried for business purposes. You should also record your vehicle's odometer reading at the start of each tax year. Keep records for at least 6 years after the relevant tax year.
The approved rate for cars and vans rose from 45p to 55p per mile (first 10,000 business miles) on 6 April 2026, the start of the 2026/27 tax year — the first increase since the 45p rate was set in 2011/12. The over-10,000-mile rate stays at 25p, and motorcycle (24p) and bicycle (20p) rates are unchanged. Some employers pay higher rates voluntarily, but any amount above the HMRC approved rate is subject to tax and National Insurance.
Yes! Electric vehicles qualify for the same HMRC mileage rates as petrol and diesel cars: 55p per mile for the first 10,000 miles and 25p per mile thereafter for 2026/27. HMRC does not set a separate lower AMAP rate for electric cars. Many EV owners find this particularly beneficial since their actual running costs are lower than petrol/diesel vehicles, making the tax-free allowance more generous in real terms.
Simplified expenses: Use HMRC's flat rate (55p/25p per mile for 2026/27) without tracking actual costs. Simple but you can never switch back to actual costs for that vehicle. Actual costs: Claim the business proportion of all running costs (fuel, insurance, repairs, tax, depreciation). More complex but can be higher for expensive vehicles or high mileage. You must choose one method and stick with it.
To calculate your real-world MPG: Fill your tank completely, reset your trip counter (or note the odometer), drive normally until you need fuel, fill up again and note the litres used and miles driven. Calculate: MPG = Miles driven ÷ (Litres used ÷ 4.546). UK MPG uses imperial gallons (4.546 litres), which is different from US gallons (3.785 litres), so UK MPG figures are about 20% higher than US figures for the same vehicle.
HMRC Approved Mileage Allowance Payments (AMAPs): 55p per mile for the first 10,000 business miles in a tax year, then 25p per mile (the 55p rate applies from 6 April 2026, up from 45p). Motorcycles: 24p/mile. Bicycles: 20p/mile.
If your employer pays less than the HMRC rate, you can claim MAR (Mileage Allowance Relief) via Self Assessment or by calling HMRC. The relief is the difference between the HMRC rate and your employer rate × miles driven.
No — commuting between home and your regular workplace is not a deductible business journey. Mileage is only claimable for travel to a temporary workplace or between business locations.
Keep a mileage log showing: date, start and end points, purpose of journey, miles driven. HMRC may request these records during an investigation. Apps like MileIQ can automate this.
For 2026/27 the first 10,000 business miles per year are reimbursed at 55p/mile tax-free (this replaced the long-standing 45p rate on 6 April 2026). Miles above 10,000 in the same tax year are 25p/mile. The 10,000-mile threshold resets each 6 April.
Yes — you can claim AMAP rates regardless of whether you own, lease or have a hire car. The rate is fixed and does not depend on actual running costs.
Expert Reviewed — This calculator is reviewed by our team and updated regularly with the latest UK tax rates and regulations, including the new 55p AMAP rate effective 6 April 2026. Last verified: May 2026.
Last updated: May 2026 | Verified against the new 2026/27 HMRC mileage rates
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Understanding Your Results
Our Mileage Calculator provides:
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- 2026/27 updated - Using current rates and regulations
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People Also Ask
Quick Tip: HMRC Mileage Allowance for Business Travel
If you use your personal vehicle for business travel in the UK, you can claim HMRC Approved Mileage Allowance Payments. For the 2026/27 tax year the rates are 55 pence per mile for the first 10,000 business miles in a tax year (up from 45p on 6 April 2026), and 25 pence per mile thereafter. For motorcycles the rate is 24 pence per mile, and for bicycles it is 20 pence per mile.
These rates are designed to cover fuel, wear and tear, insurance, and depreciation. If your employer pays you less than the approved rate, you can claim Mileage Allowance Relief on the difference through Self Assessment or by contacting HMRC directly. Keep a detailed log of each business journey including the date, destination, purpose, and miles driven, as HMRC may request evidence if they enquire about your claim. Commuting between your home and regular workplace does not qualify as business mileage.
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