UK Mileage Tax Relief 2026/27
Work out your HMRC mileage tax relief claim at 55p (first 10,000 miles) and 25p above. Cars, vans, motorcycles, bicycles - business miles, 2026/27 rates.
HMRC Approved Mileage Allowance Payments: 55p per mile for the first 10,000 business miles in a car or van, 25p above; 24p motorcycles, 20p bicycles. The 55p rate applies from 6 April 2026 (it was 45p from 2011 to 2026). If your employer pays less, you can claim Income Tax relief (Mileage Allowance Relief) on the shortfall.
Your business travel
Tax relief you can claim
£600
On a £3,000 shortfall — claim through HMRC.
- HMRC entitlement
- £6,000
- Employer paid
- £3,000
- Shortfall (or excess)
- £3,000
- Relief (or extra tax)
- £600
Claim online or by post through HMRC's job-expenses service; if you file a Self Assessment return you must claim on the return instead. You can claim for the current tax year and the 4 previous tax years. Relief cannot exceed the tax you paid in the year.
How the calculation works
- HMRC entitlement = first 10,000 miles × 55p + remaining × 25p (car/van). Motorcycles: miles × 24p flat. Bicycles: miles × 20p flat.
- Employer paid = miles × pence-per-mile your employer reimburses.
- Shortfall = entitlement − employer paid. If positive, you can claim Income Tax relief on it at your marginal rate. If negative, your employer must report the excess on form P11D and put it through payroll as taxable pay.
- Relief = shortfall × your marginal Income Tax rate (Scottish taxpayers use their Scottish band rate). The calculator assumes the whole shortfall falls in one band.
Related calculators
Self-Employed Tax →
Sole traders can claim simplified expenses at 55p / 25p for cars and vans. See full self-employed Income Tax + NI.
Company Car BIK →
Using a company car instead? HMRC advisory fuel rates (fuel only) apply, not the approved mileage rates.
Salary Take-Home →
Tax relief on mileage lands in your next tax-code adjustment. See the take-home uplift.
Tax Code Explainer →
Claiming relief bumps your tax-code number. See how the new code reads.
Sources
- HMRC — Business travel mileage: rules for tax (55p from 6 April 2026, 45p before; retrieved 1 October 2026)
- HMRC — Claim tax relief for vehicles you use for work (retrieved 1 October 2026)
- HMRC — Travel mileage and fuel rates and allowances (current)
- HMRC — Simplified expenses for vehicles (self-employed)
- HMRC — Advisory fuel rates (company cars)
Related calculators
Other UK tax calculators that pair with the Mileage.
Frequently asked questions
What are the HMRC mileage rates?
HMRC approved mileage rates: 55p per mile for the first 10,000 business miles in a tax year (car or van), 25p per mile above 10,000; 24p per mile for motorcycles; 20p per mile for bicycles. The car and van first-10,000 rate rose from 45p (in force from 2011) to 55p on 6 April 2026. Employers can pay up to these rates tax-free - anything above counts as taxable earnings.
What counts as a business mile?
Journeys you make in the course of your job, such as travel to a temporary place of work or between sites. Ordinary commuting between home and your permanent workplace is not business travel and cannot be claimed. HMRC asks for a mileage log showing the reason for each journey and the start and end postcodes.
What if my employer pays less than the approved rate?
You can claim Income Tax relief (Mileage Allowance Relief) on the shortfall. The relief is worth the shortfall times your marginal Income Tax rate. Example: 12,000 miles at 25p from your employer = £3,000; approved amount = £6,000; shortfall £3,000; relief at 20% = £600, at 40% = £1,200. Relief cannot exceed the tax you paid that year.
How do I claim the tax relief?
Use HMRC's online job-expenses service or the postal form. If you file a Self Assessment return you must claim through the return instead. You can claim for the current tax year and the 4 previous tax years. HMRC asks for copies of your mileage log, showing the reason for each journey and the start and end postcodes. For the current year HMRC usually adjusts your tax code; for past years it adjusts your code or pays a refund.
What if my employer pays more than the approved rate?
The excess is taxable as earnings. Example: employer pays 60p a mile for 8,000 miles = £4,800; approved amount = £4,400; the excess of £400 is reported on form P11D and taxed through payroll. Class 1 National Insurance is also due on payments above 55p a mile for a car or van.
Can I claim mileage if I use a company car?
Different rules. Company-car drivers use HMRC Advisory Fuel Rates (AFR), pence-per-mile figures set quarterly by HMRC that cover only the fuel cost (not wear and tear, since the employer owns the car). AFR is much lower than AMAP: from 1 September 2026 it runs 14p to 27p for petrol by engine size, 15p to 22p for diesel, and 7p or 15p for an electric car depending on whether it is charged at home or publicly. This calculator is for personal-vehicle-for-business-use.
Can I claim for carrying passengers on business trips?
Employers can pay up to 5p per passenger per business mile tax-free for carrying a fellow employee in a car or van on a journey that is also a work journey for them. There is no tax relief if your employer pays less than 5p or nothing at all.
Does this apply to self-employed people?
Sole traders and partnerships without company partners can use simplified expenses flat rates for cars and goods vehicles (55p for the first 10,000 miles, then 25p) and motorcycles (24p). Bicycles are not covered. The alternative is to claim actual costs. You cannot use the flat rate for a vehicle you have claimed capital allowances on, and once you use it for a vehicle you must keep using it for as long as that vehicle is used in the business.