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Business mileage allowance calculator

Business mileage claims at HMRC approved rates. Free, instant, and no sign-up needed.

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  • 2026/27 rates
  • Free and instant
  • No sign-up
Vehicle
mi

Approved mileage rates: cars and vans 45p for the first 10,000 miles and 25p after, motorcycles 24p, bicycles 20p. Self-employed people using simplified expenses cannot also claim capital allowances on the same vehicle.

  • Business miles8,000
  • Rate45p then 25p

Mileage claim

£3,600.00

Want this result by email?

We will send your figures and a short note on what to check. An accountant may follow up if you ask a question.

How does the mileage allowance calculator work?

HMRC's approved mileage rates are 45p per mile for the first 10,000 business miles in a tax year and 25p per mile after that for cars and vans, 24p for motorcycles and 20p for bicycles. Self-employed people can use these simplified rates instead of claiming actual vehicle costs.

How it works.

  1. 1

    Business miles only

    Only journeys made for business count: visiting clients, collecting stock, travelling between sites. Commuting from home to a permanent workplace does not, and a mileage log is the evidence HMRC expects.

  2. 2

    Simplified versus actual costs

    Self-employed people can claim mileage at the flat rates or claim a proportion of actual costs (fuel, insurance, repairs) plus capital allowances. You choose one method for each vehicle and generally stick with it.

  3. 3

    Employees and company cars

    Employers can pay the same rates tax free. If you pay your employees less, they can claim the difference as tax relief, and different rules apply to company cars and fuel.

Rates used, 2026/27.

Last checked November 2026 against GOV.UK: Simplified expenses. General information, not advice.

Rate

45p

Cars and vans, first 10,000 miles

Rate

25p

Cars and vans, after 10,000 miles

Rate

24p

Motorcycles

Rate

20p

Bicycles

A worked example.

12,000 business miles in a car gives a claim of £5,000: 10,000 miles at 45p (£4,500) plus 2,000 miles at 25p (£500).

Using the result well.

What the number means, what it leaves out and what to do next.

01

Reading your result

The calculator applies HMRC's approved mileage rates to your business miles: 45p a mile for the first 10,000 miles in a car or van and 25p after that, 24p for a motorcycle and 20p for a bicycle. The result is the amount your company can pay you tax free for using your own vehicle.

If the company pays you less than the approved amount, you can claim the difference as a deduction on your personal return in some cases.

  • 45p then 25p for cars
  • 24p motorcycles, 20p bicycles
  • Tax-free when paid by the company
02

What counts as business mileage

Travel to a temporary workplace and between workplaces counts. Ordinary commuting from home to a permanent workplace does not. A workplace you attend for more than 24 months, or for most of your time, generally becomes permanent.

Keep a log with the date, the journey and the miles, because that is what HMRC expects to see.

  • Temporary workplaces count
  • Commuting does not
  • Keep a mileage log
03

Company car or own car

Paying approved mileage for your own car is usually simpler and cheaper in tax terms than a company car, which creates a benefit in kind and a Class 1A National Insurance cost for the company. Electric company cars have favourable treatment, which can change the comparison.

Run the numbers for your own mileage before you decide.

  • Own car, simple and tax free
  • Company car creates a benefit
  • Electric cars treated differently

Quick tips.

Tip

Log every journey

Date, start, end, purpose and miles are the minimum.

Tip

Use the cumulative 10,000 miles

The rate drops after 10,000 business miles in the tax year.

Tip

Do not claim commuting

Travel to a permanent workplace is private mileage.

Services that help.

Service

Tax planning for directors

Salary, dividends, pensions and timing planned to legally keep more.

Service

Year-end accounts

Statutory accounts and CT600, filed on time for a fixed price.

Service

Bookkeeping

Monthly books in Xero, QuickBooks or FreeAgent, ready for VAT and year end.

Questions about this calculator.

Can I claim mileage as a limited company director?

Yes. Your company can reimburse business mileage at the approved rate tax free, and the company deducts it as an expense. You need a mileage log.

What records do I need?

Date, start and end locations, purpose and miles for each journey, plus the odometer reading at the start and end of the tax year.

Do electric vehicles use different rates?

For the simplified mileage rates the figures are the same for cars and vans regardless of fuel type, although electric vehicles have separate rules for company car benefits and charging costs.

Want an accountant to run your real numbers?

Tell us about your company and we will confirm the best way to pay yourself, and a fixed fee.

Get a quote WhatsApp us0203 4411 258