Mileage allowance calculator
Work out how much you can be paid tax free for business miles in your own vehicle, at HMRC's approved rates, and what you can claim back if you are paid less.
HMRC's approved mileage rates for 2026 to 2027, checked 14 November 2026.
Result
HMRC's tax-free amount for 8,000 business miles is £4,400. You can claim tax relief on £4,400, worth £880 at 20%.
| Approved amount | £4,400 |
|---|---|
| Paid by your employer | £0 |
| Relief to claim on | £4,400 |
| Tax relief at 20% | £880 |
Show the workings
| Step | Sum | Answer |
|---|---|---|
| First 10,000 miles | 8,000 × 55p | £4,400.00 |
| Approved amount, tax free | £4,400 | £4,400.00 |
| Paid by your employer | 8,000 × 0p | £0.00 |
| Left to claim as Mileage Allowance Relief | £0 − £4,400 | £4,400.00 |
| Tax relief at your rate | £4,400 × 20% | £880.00 |
What this leaves out or assumes
- Counts business miles in one tax year, from 6 April to 5 April. Commuting to your usual workplace is not business mileage.
Where the figures come from
- Approved mileage rate for cars and vans, first 10,000 business miles in the tax year: 55 pence a mile. Source: HMRC: Travel — mileage and fuel rates and allowances. Checked 14 November 2026.
- Approved mileage rate for cars and vans, each business mile over 10,000: 25 pence a mile. Source: HMRC: Travel — mileage and fuel rates and allowances. Checked 14 November 2026.
- Business miles in a tax year at the higher car and van rate: 10,000 miles. Source: HMRC: Travel — mileage and fuel rates and allowances. Checked 14 November 2026.
- Approved mileage rate for motorcycles: 24 pence a mile. Source: HMRC: Travel — mileage and fuel rates and allowances. Checked 14 November 2026.
- Approved mileage rate for bicycles: 20 pence a mile. Source: HMRC: Travel — mileage and fuel rates and allowances. Checked 14 November 2026.
- Basic rate of Income Tax (England, Wales and Northern Ireland): 20%. Source: HMRC: Rates and thresholds for employers 2026 to 2027. Checked 13 November 2026.
How the allowance works
When you use your own car, van, motorcycle or bicycle for work, your employer can pay you up to HMRC's approved amount without tax: 55p a mile for the first 10,000 business miles in a car or van, then 25p a mile.
- Paid more: the extra counts as pay and is taxed.
- Paid less, or nothing: you can claim Mileage Allowance Relief on the difference. The relief is the difference times your rate of tax. You claim it from HMRC, on GOV.UK.
Business miles are journeys you make for work, not your commute to your usual workplace.
The rate went up in April 2026
From 6 April 2026 the car and van rate for the first 10,000 miles is 55p. From 2011 to 2026 it was 45p. The rate over 10,000 miles stays at 25p. So 8,000 miles now comes to £4,400 tax free, up from £3,600.