HMRC mileage allowance calculator
Using your own car for work? See how much you can be paid tax-free, and how much tax you can claim back if your employer pays less than 55p a mile.
Tax relief you can claim
£600
- HMRC approved amount
- £6,000
- Paid by your employer
- £3,000
- Shortfall you can claim on
- £3,000
Claim Mileage Allowance Relief on the shortfall through your Personal Tax Account, form P87 or your Self Assessment return. You can claim for the last four tax years.
HMRC approved mileage rates 2026/27
| Vehicle | First 10,000 business miles | Over 10,000 miles |
|---|---|---|
| Cars and vans | 55p | 25p |
| Motorcycles | 24p | 24p |
| Bicycles | 20p | 20p |
The rate for cars and vans rose from 45p to 55p a mile from the 2026/27 tax year, the first rise since 2011, and Budget 2026 made it permanent. The same Budget raised the rate above 10,000 miles from 25p to 35p a mile from 6 April 2027. Employers can also pay 5p a mile tax-free for each work colleague you carry as a passenger. The 10,000-mile threshold counts all your business miles in the tax year (6 April to 5 April) across every job with the same employer.
Mileage Allowance Relief
If your employer pays less than the approved rate, or nothing at all, you can claim tax relief on the difference. You get back the difference multiplied by your income tax rate: 20% for a basic-rate taxpayer. Claim online, by post on form P87, or on your Self Assessment return.
What counts as business mileage
Journeys you make for work, such as visiting clients or a temporary workplace. Your normal commute between home and your permanent workplace doesn't count.
Rates for 2026/27, checked against the official sources on : HMRC travel mileage rates and GOV.UK simplified expenses for vehicles. Tax rules can change at a Budget; we update these tools when they do.
Frequently asked questions
›Is 55p a mile tax-free?
Yes, from the 2026/27 tax year, for the first 10,000 business miles in your own car or van. After that the tax-free rate is 25p a mile, rising to 35p from 6 April 2027. Before April 2026 the rate was 45p.
›Does the 55p rate apply to electric cars?
Yes. The approved mileage rates are the same for petrol, diesel, hybrid and electric cars you own. Company car drivers use the lower advisory fuel rates instead.
›How far back can I claim Mileage Allowance Relief?
Four tax years. Keep a record of each journey's date, destination, reason and miles.
›Can I use the mileage rates if I'm self-employed?
Yes, as simplified expenses for cars, vans and motorcycles. You then can't claim the vehicle's actual running costs, and you must keep using the flat rate for that vehicle.