Mileage allowance calculator 2026/27

From 6 April 2026, HMRC's approved mileage rate for cars and vans rose from 45p to 55p a mile, the first rise since 2011. Work out your tax-free amount and any tax relief you can claim.

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
Passenger payments	5p per passenger per business mile

These Approved Mileage Allowance Payments (AMAPs) are the most your employer can pay you tax-free when you use your own vehicle for work. They are meant to cover fuel, insurance, servicing and wear and tear.

What counts as business mileage?

Business journeys are trips you make for work, such as visiting a client, travelling to a temporary workplace or driving between sites. Your normal commute from home to your permanent workplace does not count.

Claiming Mileage Allowance Relief

If your employer pays you less than the approved rate, or nothing at all, you can claim tax relief on the difference. For example, if you drive 8,000 business miles and your employer pays 30p a mile, the approved amount is £4,400 and your employer pays £2,400. You can claim relief on the £2,000 difference. A basic-rate taxpayer gets 20% of that back: £400.

You can claim through your Self Assessment tax return or online with HMRC. Claims can go back up to four tax years.

Frequently asked questions

What is the HMRC mileage rate for 2026/27?

55p a mile for the first 10,000 business miles in a car or van, then 25p a mile. It rose from 45p on 6 April 2026.

Can I claim mileage if I use a company car?

No. Approved mileage rates are for your own vehicle. Company car users have separate advisory fuel rates for fuel only.

Do the 10,000 miles reset each year?

Yes. The 10,000-mile limit applies to each tax year, from 6 April to 5 April.

Guidance only. Source: GOV.UK travel, mileage and fuel rates and allowances.