Mileage allowance calculator
For the 2026 to 2027 tax year, HMRC’s approved rate for cars and vans is 55p a mile for the first 10,000 business miles and 25p after that.
- Your employer pays
- 0p
- Shortfall you can claim on
- £3,300
- Tax relief worth
- £660.00
- Taxable extra
- 0p
6,000 business miles by car or van in the 2026 to 2027 tax year. You can claim tax relief on the shortfall from HMRC (Mileage Allowance Relief), worth about the amount shown at your tax rate.
A guide, not tax advice. Claim relief on a shortfall from HMRC, and keep a record of every business journey.
HMRC approved mileage rates, 2026 to 2027
| Vehicle | First 10,000 miles | Over 10,000 miles |
|---|---|---|
| Cars and vans | 55p | 25p |
| Motorcycles | 24p | 24p |
| Bicycles | 20p | 20p |
| Passengers (per passenger, cars and vans) | 5p | 5p |
Tax-free allowance by business mileage
Cars and vans, 2026 to 2027.
| Business miles | Tax-free allowance |
|---|---|
| 1,000 | £550.00 |
| 2,500 | £1,375 |
| 5,000 | £2,750 |
| 7,500 | £4,125 |
| 10,000 | £5,500 |
| 12,500 | £6,125 |
| 15,000 | £6,750 |
| 20,000 | £8,000 |
How we calculate this
HMRC sets approved mileage allowance payment (AMAP) rates each tax year. For 2026 to 2027, cars and vans are 55p a mile for the first 10,000 business miles and 25p after that. Employers can pay up to this much tax-free.
If your employer pays less, or nothing, you can claim tax relief on the difference (Mileage Allowance Relief). The relief is the shortfall multiplied by your tax rate. If they pay more, the extra is taxable.
Questions people ask
What is the HMRC mileage rate for 2026 to 2027?
55p a mile for cars and vans for the first 10,000 business miles in the tax year, then 25p. Motorcycles are 24p and bicycles 20p a mile.
Can I claim if my employer doesn’t pay mileage?
Yes. You can claim Mileage Allowance Relief from HMRC on the difference between the approved amount and what you were paid. You get tax back at your rate, not the full amount.
Does my commute count as business mileage?
No. Ordinary commuting between home and a permanent workplace doesn’t count. Trips to a temporary workplace, client or other site usually do.
I’m self-employed. Can I use these rates?
Many sole traders can use simplified expenses, which use the same mileage rates instead of claiming actual car costs. Check the rules on GOV.UK or with an accountant.
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