Mileage allowance calculator
Work out what your business miles are worth at HMRC's rates, now 55p a mile for cars and vans from April 2026, and roughly how much tax that saves you.
Calculate your mileage
The short answer (from 6 April 2026)
- Cars and vans: 55p a mile for the first 10,000 miles, then 25p a mile. It was 45p until 5 April 2026.
- Motorbikes: 24p a mile. Bicycles (employees only): 20p a mile.
- The rate covers all running costs, including fuel, insurance, repairs and wear and tear.
General information based on GOV.UK rates checked on 11 October 2026. Tax savings are estimates using the 2026/27 rates for England, Wales and Northern Ireland. Not tax advice.
HMRC mileage rates
| Vehicle | 2026/27 (from 6 April 2026) | 2025/26 |
|---|---|---|
| Car or van, first 10,000 miles | 55p | 45p |
| Car or van, after 10,000 miles | 25p | 25p |
| Motorbike | 24p | 24p |
| Bicycle (employees) | 20p | 20p |
If you're self-employed
Using the flat mileage rate is called simplified expenses. Instead of working out your actual vehicle costs, you claim the rate for every business mile, and it comes off your profit before tax. It's available to sole traders and partnerships made up of individuals, not limited companies.
If you use the mileage rate, you can't also claim fuel, insurance, repairs or servicing for that vehicle, and you can't use it for a vehicle you've already claimed capital allowances on. Parking and other travel costs, like train fares, can still be claimed on top.
If you're an employee
If you use your own car for work, your employer can pay you up to the HMRC rate tax-free. If they pay you less, or nothing, you can claim Mileage Allowance Relief on the difference. You don't get the money itself back: you get tax relief on it, at your highest tax rate.
Frequently asked questions
What is the HMRC mileage rate for 2026/27?
For cars and vans it's 55p a mile for the first 10,000 business miles in the tax year, then 25p a mile. It rose from 45p on 6 April 2026, the first increase in many years.
Does my commute count as business mileage?
No. Driving between home and your normal place of work is commuting. Business mileage is travel for work itself, like visiting clients, going to a temporary workplace or picking up supplies.
What if some of my miles were before 6 April 2026?
Rates go by tax year. Miles in the 2025/26 tax year (to 5 April 2026) use 45p for the first 10,000. Miles from 6 April 2026 use 55p. Choose the right year in the calculator.
Do I need to keep a mileage log?
Yes. Keep a record of the date, where you went, why, and how many miles. A notes app or a simple spreadsheet is fine, as long as it's kept as you go.
Is it better to claim actual costs instead?
Sometimes, for expensive or very high-mileage vehicles. For most sole traders with an ordinary car, the flat rate is simpler and often just as good, especially now it's 55p. GOV.UK has a checker to compare the two.
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