Mileage Claim Calculator — HMRC Approved Rates for 2026/27
If you use your own vehicle for business travel, HMRC lets you claim a tax-free mileage allowance — but only if you track it properly. This tool logs your journeys, applies the correct HMRC rates automatically, and calculates your total claim plus the actual tax saving.
How to use this calculator
Add each business journey with the date, locations, and miles driven. The calculator applies HMRC's approved mileage rates: 45p per mile for the first 10,000 car miles, then 25p per mile after that. Motorcycle and bicycle rates are applied separately.
Select your tax band to see the actual tax saving — that's the real cash benefit of claiming mileage correctly. If you carry passengers who are also travelling for business, the 5p per mile passenger supplement is added automatically.
Understanding Your Mileage Claim
HMRC's approved mileage rates are designed to cover the full cost of using your own vehicle for business — fuel, insurance, wear and tear, servicing, and depreciation. The key distinction is that you can only claim for business journeys, never for commuting between home and your permanent workplace.
The 10,000-mile threshold is critical and catches many people out. Your first 10,000 business miles in a tax year are claimed at 45p per mile. Every mile after that drops to 25p. This is cumulative across the entire tax year — not per journey. A sole trader doing 15,000 business miles would claim £4,500 for the first 10,000 miles plus £1,250 for the remaining 5,000 — a total of £5,750.
If you're a higher-rate taxpayer, that £5,750 claim saves you £2,300 in tax. Missing this claim is literally leaving money on the table.
Frequently Asked Questions
What counts as a business journey?
Any journey between temporary workplaces, to client sites, to suppliers, to the bank for business purposes, or to training courses. Travel between your home and your permanent workplace (commuting) does not count. If you work from home and have no fixed office, travel to client sites and business meetings qualifies.
Can I claim mileage if my employer pays me a car allowance?
If your employer pays you less than the HMRC approved rate (45p/25p), you can claim Mileage Allowance Relief (MAR) on the difference through your tax return. If they pay you more than the HMRC rate, the excess is taxable as a benefit in kind.
Do I need to keep a mileage log?
Yes. HMRC requires you to record the date, destination, purpose, and miles for each business journey. Without records, your claim can be disallowed entirely during an enquiry. This calculator helps you build that log — but keep a copy as evidence.
Can I claim mileage AND fuel costs?
No — it's one or the other. If you use HMRC's approved mileage rates (simplified method), they already include fuel. Alternatively, you can claim actual vehicle costs (fuel, insurance, servicing, depreciation) and apportion the business percentage — but this requires far more detailed record-keeping.
What about electric vehicles?
Electric vehicles use the same HMRC approved mileage rates as petrol and diesel cars — 45p for the first 10,000 miles, 25p thereafter. The Advisory Fuel Rates (AFRs) for company cars do have a separate electric rate, but that only applies to employer-provided vehicles.
Does the 10,000-mile threshold reset each tax year?
Yes. The 10,000-mile limit applies per tax year (6 April to 5 April). At the start of each new tax year, you're back to the 45p rate for your first 10,000 business miles.
Related Tax Tools
Are you claiming everything you're entitled to?
Mileage is just one deduction. A full expense review often uncovers thousands in missed claims — especially for sole traders and directors.
Book a Free Discovery CallThis tool is for educational purposes only and does not constitute tax advice. HMRC approved mileage rates shown are for the 2026/27 tax year. Always keep detailed records and consult a qualified accountant.
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