Mileage allowance calculator 2026/27
For 2026/27 the approved mileage rate for your own car or van is 55p a mile for the first 10,000 business miles (up from 45p) and 25p after that. Motorcycles are 24p and bicycles 20p. Employers can pay up to these rates tax-free; if yours pays less, you can claim tax relief on the gap. Self-employed people can use the same car and motorcycle rates.
How much mileage can I claim?
Choose your vehicle and enter your business miles for the 2026/27 tax year. The result updates as you type, and nothing you enter is stored or sent anywhere.
Your result
Enter your business miles to see your figures.
You'll see the tax-free approved amount, any taxable excess or relief you can claim, and the assumptions behind it.
Claiming everything you should?
Mileage is easy to under-record. Our guide covers it alongside the other tax reliefs business owners miss.
What are the approved mileage rates for 2026/27?
From 6 April 2026 the car and van rate rose from 45p to 55p a mile for the first 10,000 business miles. The other rates are unchanged, and all of them apply across the UK (GOV.UK: travel mileage and fuel rates). For National Insurance, the employer rates for 2026/27 allow 55p for every car or van mile.
| Vehicle | First 10,000 business miles | Over 10,000 business miles | National Insurance |
|---|---|---|---|
| Car or van | 55p | 25p | 55p for every mile |
| Motorcycle | 24p | 24p | 24p |
| Bicycle | 20p | 20p | 20p |
How does it work for employees and directors?
Your employer can pay you up to the approved amount tax-free. If it pays more, the excess is taxable pay and your employer reports it to HMRC (GOV.UK: mileage rules for tax). Because National Insurance allows 55p on every car mile, part of a 55p payment on miles over 10,000 is taxable but free of National Insurance. If you use more than one vehicle, the miles are added together. Your employer can also pay up to 5p a mile for each fellow employee you carry on a work journey, but there's no relief if they pay less.
How do I claim Mileage Allowance Relief?
If your employer pays less than the approved amount, or nothing, you can claim tax relief on the difference (GOV.UK: vehicles you use for work). Ordinary commuting doesn't count unless it's to a temporary workplace. Claim online with mileage logs showing each journey's date, reason and start and end postcodes, or on your Self Assessment return if you file one. You can claim for the current tax year and the previous 4.
Worked example: employer pays 45p a mile
An employee drives 12,000 business miles in their own car in 2026/27, and their employer pays 45p a mile.
- Approved amount: 10,000 × 55p = £5,500, plus 2,000 × 25p = £500, so £6,000.
- Employer pays: 12,000 × 45p = £5,400.
- Mileage Allowance Relief: £6,000 − £5,400 = £600.
- Tax saved: £120 at 20%, or £240 at 40%.
Can self-employed people claim 55p a mile?
Yes, through simplified expenses: 55p a mile for the first 10,000 business miles and 25p after that for cars and goods vehicles, and 24p for motorcycles. There's no flat rate for bicycles. You can't use it for a vehicle you've already claimed capital allowances on, and once you choose it for a vehicle you must stick with it for as long as you use that vehicle in your business. Simplified expenses are for sole traders and partnerships; if you run a limited company, use the employee calculation for mileage the company pays you.
Want a second pair of eyes on your claims? Our personal tax service covers mileage and expenses, and our tax savings calculator helps company directors plan their pay.
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Tax savings everyone should be aware of 2026/27
Ten reliefs we see missed most often, mileage included, written for the 2026/27 tax year. Free to download.
Frequently asked questions
What is the mileage allowance for 2026/27?
55p a mile for the first 10,000 business miles in a car or van, then 25p a mile. Motorcycles are 24p and bicycles 20p for every business mile. The car and van rate rose from 45p on 6 April 2026.
Can my employer pay more than 55p a mile?
Yes, but anything above the approved amount is taxable pay, and your employer has to report it to HMRC. For National Insurance, cars and vans get 55p for every business mile, so on miles over 10,000 a payment of up to 55p is free of National Insurance even though part of it is taxable.
My employer pays nothing for mileage. What can I claim?
You can claim Mileage Allowance Relief on the full approved amount. It reduces your taxable pay, so 5,000 business miles in a car (£2,750) saves £550 for a basic rate taxpayer or £1,100 for a higher rate taxpayer. Ordinary commuting does not count.
Does the 10,000-mile limit apply to each car?
No, if you're an employee. GOV.UK says it does not matter if you use more than one car or van in a year: the business miles are added together, so the 25p rate starts after 10,000 business miles in total.
Can I claim 55p a mile if I'm self-employed?
Yes, through simplified expenses: 55p a mile for the first 10,000 business miles and 25p after that for cars and goods vehicles, and 24p for motorcycles. You cannot use it for a vehicle you have already claimed capital allowances on, and once you choose it for a vehicle you must keep using it while that vehicle is in your business.
Written and reviewed by George Nicholson BFP ACA, ICAEW Chartered Accountant. Last reviewed 20 October 2026. This page is general information, not personal advice.
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