MilesheetUK mileage claim calculator
Turn business miles into the money HMRC approves, or work backwards from a figure to the miles behind it. The 45p and 25p rates, the 10,000-mile threshold and the 5p passenger rate, applied the way they actually work.
Approved mileage allowance
£540.00on 1,200 business miles
- 1,200 miles at 45p£540.00
Figures are estimates for record-keeping, not tax advice.
What the rates come to
The approved rates cover fuel, servicing, insurance, tax and depreciation — everything it costs to put your own car on the road for work. They have not changed since 2011.
| Business miles | At 45p | At 25p | Approved amount | Looks like |
|---|---|---|---|---|
| 500 | 500 mi | 0 mi | £225.00 | A light month |
| 2,500 | 2,500 mi | 0 mi | £1,125.00 | A regular commute to clients |
| 10,000 | 10,000 mi | 0 mi | £4,500.00 | The full 45p band |
| 15,000 | 10,000 mi | 5,000 mi | £5,750.00 | Past the threshold |
How the calculation works
The two rates and the threshold
For cars and vans, HMRC approves 45p a mile for the first 10,000 business miles in a tax year and 25p a mile beyond it. The threshold counts every business mile you drive in the year, across every vehicle and every employer — not per car. It resets on 6 April.
A journey that takes you past 10,000 miles is split at the point it crosses: the miles below the line are paid at 45p, the miles above at 25p. This calculator splits it the same way, which is why the breakdown shows two bands once you go past the threshold.
Passengers
Carrying a colleague on a business journey earns an extra 5p per mile per passenger. It is optional for an employer to pay it, and if they do not, you cannot claim tax relief on the difference — unlike the main rates.
If your employer pays less than the approved rate
You can claim Mileage Allowance Relief on the shortfall. You do not get the shortfall back in cash: you get tax relief on it, so a basic-rate taxpayer sees roughly 20% of it. Claim through Self Assessment, or a P87 if you do not file a return. Enter what your employer pays above and the calculator shows what the relief is worth.
What counts as a business mile
Travel to a temporary workplace, between sites, or to a client usually qualifies. Ordinary commuting — home to a permanent workplace — does not. Our guide on what counts as a business mile works through the awkward cases, and the rates explained covers the thresholds in more depth.
Company cars are different
These rates apply to your own vehicle. If the car belongs to the company, fuel is handled through Advisory Fuel Rates instead, which are lower, vary by engine size and fuel type, and are revised quarterly.
Questions
What are the HMRC mileage rates for 2026/27?
The approved mileage allowance payment rates for cars and vans are 45p a mile for the first 10,000 business miles in a tax year and 25p a mile after that. They have been unchanged since 2011. Motorcycles are 24p and bicycles 20p, with no threshold.
Does the 10,000-mile threshold reset every year?
Yes. It resets at the start of each tax year on 6 April, and it counts business miles across every vehicle you use for work — not per car and not per employer.
What is the 5p passenger rate?
If you carry a colleague on a business journey, you can claim an extra 5p per mile for each passenger. It is optional for employers to pay it, and you cannot claim tax relief on it if they do not.
What if my employer pays less than 45p a mile?
You can claim tax relief on the difference through Mileage Allowance Relief. If you drive 4,000 business miles and are paid 25p a mile, the approved amount is £1,800 and you were paid £1,000, so you claim relief on £800 — worth about £160 to a basic-rate taxpayer. Claim it through Self Assessment, or a P87 if you do not file a return.
Do commuting miles count?
No. Travel between home and a permanent workplace is ordinary commuting and does not qualify. Travel to a temporary workplace, between sites, or to a client usually does.
What records do I need to keep?
For each business journey: the date, the start and end points, the reason for the trip, and the distance. Keep them for at least 22 months after the end of the tax year, or five years if you are self-employed and file a Self Assessment return.
Where these figures come from
Every rate and rule on this page is HMRC's, not ours. These are the pages they come from, checked on 21 August 2026. The approved rates have not changed since 2011, but they are worth re-checking before you file.
- Travel — mileage and fuel rates and allowances The 45p and 25p approved rates, the 10,000-mile threshold, and the 5p passenger rate.
- Expenses and benefits: business travel mileage — rules for tax How approved mileage allowance payments work, and what happens above the approved amount.
- Tax relief for employees: business mileage and fuel costs Mileage Allowance Relief when an employer pays less than the approved rate.
- Claim Income Tax relief for your employment expenses (P87) How to claim the relief if you do not file a Self Assessment return.
- Ordinary commuting and private travel (490: Chapter 3) What counts as a business journey, and why the commute does not.
- Advisory fuel rates The separate, quarterly rates that apply to company cars.
- Keeping your pay and tax records How long to keep a mileage log — and the longer period for the self-employed.
Milesheet is not a tax adviser. This page is a calculator and a summary of published guidance — check anything that matters with HMRC or your accountant.
Stop doing this from memory
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