HMRC Mileage Claim Calculator
Calculate the HMRC-approved mileage allowance for using your own car, van, motorcycle or bicycle for business travel — 55p per mile for the first 10,000 miles in 2026-27 (45p for 2025-26), then 25p after. See exactly how much Mileage Allowance Relief you can claim if your employer pays less than the approved rate.
Smart Tips
You could claim back £880 from HMRC
Your employer paid £4,400 less than the HMRC-approved amount. You don't get the shortfall back in full — you get tax relief on it at your marginal rate, worth £880 in this case. Claim via a Self Assessment return or form P87 if you don't file one.
GOV.UK: Form P87 — claim employment expenses (opens in new tab)Carried a colleague on a business trip?
You can claim an extra 5p per mile, tax-free, for each fellow employee you carry as a passenger on a business journey they're also making for work. Add passenger miles above if this applies.
GOV.UK: Mileage allowance rules (opens in new tab)Keep a mileage log
HMRC expects a record of each business journey — date, destination, purpose, and miles travelled — to support a Mileage Allowance Relief claim or to justify payments received. A simple spreadsheet or app log is usually enough.
GOV.UK: Claim tax relief for using your own vehicle (opens in new tab)Frequently asked questions
- What is the HMRC mileage rate for 2026-27?
- For cars and vans, HMRC's approved rate is 55p per mile for the first 10,000 business miles in a tax year, then 25p per mile after that. Motorcycles are a flat 24p per mile, and bicycles are a flat 20p per mile. The car/van first-tier rate rose from 45p to 55p on 6 April 2026 — for 2025-26 claims it's still 45p, not 55p.
- What is Mileage Allowance Relief?
- If your employer pays you less than the HMRC-approved mileage rate (or nothing at all), you can claim tax relief on the shortfall. This isn't a refund of the full shortfall — it's relief at your marginal income tax rate, so a basic-rate taxpayer gets back 20% of the shortfall, not 100% of it.
- What happens if my employer pays more than the approved mileage rate?
- Any amount paid above the HMRC-approved rate counts as a taxable benefit. It's usually added to your taxable pay and may also attract Class 1 National Insurance, typically collected through payroll or your tax code.
- Can I claim extra for carrying a passenger?
- Yes. If you're driving a car or van and carry a fellow employee who is also on a business journey for your employer, you can claim an additional 5p per mile, tax-free. This doesn't apply to motorcycles or bicycles.
- How do I actually claim Mileage Allowance Relief from HMRC?
- If you already complete a Self Assessment tax return, include the claim there. Otherwise, use form P87 (either online via your Personal Tax Account or by post) if your claim is for £2,500 or less in a tax year. Keep a mileage log of dates, destinations, purposes and miles travelled to support your claim.