Mileage allowance relief calculator
If you drive your own car for work, HMRC sets an approved rate your employer can reimburse you at tax free: 55p a mile for the first £10,000 business miles of the tax year, then 25p. Where your employer pays less than that, or nothing, the shortfall is mileage allowance relief and you can claim tax back on it. The first-£10,000 rate had been 45p since 2011 and rose to 55p on 6 April 2026, so a claim for this year is worth more than the same mileage was worth last year. Rates checked 23 September 2026 against gov.uk.
Calculator
Mileage allowance relief calculator
Travel to clients or between sites. Not your normal commute.
Leave at 0 if they pay nothing towards mileage.
Tax relief you can claim for 2026/27
£880.00
£8,000 business miles are worth £4,400.00 at the approved rates. Your employer pays nothing towards it, so the whole amount is claimable. At 20% that is £880.00 back.
How the £4,400.00 is made up
All £8,000 miles are inside the first £10,000 of the tax year, so they are all at 55p. Above £10,000 the rate drops to 25p for the rest of the year, then resets each 6 April. This year's 55p is an increase from 45p, where it had sat since 2011. The rise applies from 6 April 2026, so miles already driven this tax year are covered by it.
Relief is worth your tax rate, not the full amount: claiming £4,400.00 reduces the income you are taxed on, it is not a cheque for that sum. You can claim for the 4 earlier tax years too, each at the rate that applied then, which is why 2025/26 and before are still 45p in the selector above. Check the effect on your own pay with the take-home pay calculator.
The rate rose this year, and most guidance still says 45p
The approved rate for the first £10,000 miles sat at 45p from 2011 until 21 May 2026, when an increase to 55p was announced and backdated to 6 April 2026. The rate above £10,000 miles was left at 25p.
Two practical consequences. Miles you have already driven since 6 April 2026 qualify at the higher rate, even though many employers were still reimbursing at 45p for part of the year, and that difference is itself claimable. And an employer who pays exactly 45p is now paying under the approved rate rather than at it, so their staff have a claim where previously they had none: £10.00 for every hundred business miles.
| Tax year | First £10,000 miles | Each mile after | £12,000 miles is worth |
|---|---|---|---|
| 2026/27 | 55p | 25p | £6,000.00 |
| 2025/26 | 45p | 25p | £5,000.00 |
| 2024/25 | 45p | 25p | £5,000.00 |
| 2023/24 | 45p | 25p | £5,000.00 |
| 2022/23 | 45p | 25p | £5,000.00 |
A claim can cover the 4 earlier years as well as this one, each at its own rate, which is why the older rows matter rather than being history.
What counts, and what does not
- Your own vehicle only. A company car is a different arrangement entirely, taxed as a benefit with its own advisory fuel rates.
- Commuting does not count. Home to a permanent workplace never qualifies, however far. A temporary workplace, travel between sites, or journeys to clients do.
- The threshold is per tax year, not per job. The £10,000 miles reset every 6 April, and they are counted across all your employments together rather than separately.
- Relief is worth your tax rate. Claiming £1,000.00 of relief saves £200.00 at basic rate and £400.00 at higher rate, not £1,000.00. Your rate depends on total income, which the income tax calculator shows.
- Keep a record. Date, route, purpose and miles. HMRC can ask for it, and a claim without one is hard to defend.
How to use the mileage allowance relief calculator
- 1
Enter your business miles for the tax year, leaving out any ordinary commuting.
- 2
Enter what your employer pays per mile, or leave it at zero if they pay nothing.
- 3
Pick the tax year: earlier years use the 45p rate that applied before the increase.
- 4
Read the relief, then claim it through your tax code or a Self Assessment return.
When should you use the mileage allowance relief calculator?
Use it if you drive your own car for work and your employer pays you less than HMRC's approved rate per mile, or nothing at all.
Your employer pays 45p a mile
That was the approved rate until April 2026 and is now below it, so there is a claim where previously there was none.
Your employer pays nothing
The whole approved amount is claimable, which on any real mileage is the largest claim of the four.
You drive more than 10,000 business miles
The rate drops to 25p above the threshold, and the threshold resets each 6 April rather than per job.
You never claimed in past years
Four earlier tax years are still open, each calculated at the rate that applied in that year.
Where to go next
- Company car tax calculatorTo if the car is provided rather than your own.Open
- Income tax calculatorTo the rate that decides what the relief is worth.Open
- Tax rebate calculatorTo other reasons you may be owed tax back.Open
All 51 calculators share one tested engine, so a figure from the mileage allowance relief calculator agrees with every other page here. See the full calculator index or the pay and tax guides.
Common questions
What is the HMRC mileage rate for 2026/27?
55p a mile for the first £10,000 business miles in the tax year, then 25p for every mile after that. The first-£10,000 rate rose from 45p, announced 21 May 2026 and backdated to 6 April 2026, so miles already driven this tax year qualify at the higher rate. Motorcycles are 24p and bicycles 20p, with no threshold.
Can I claim mileage if my employer already pays me?
Only on the difference. If they pay less than the approved rate, you claim relief on the gap: at 30p a mile against 55p, the claimable amount is 25p a mile. If they pay the approved rate in full there is nothing to claim, and if they pay more than it, the excess is taxable pay rather than a relief.
How far back can I claim mileage allowance relief?
4 earlier tax years, so a claim made now can still reach back several years. Each year is calculated at the rate that applied in it, which means earlier years are at 45p rather than the current 55p.
Does commuting count as business mileage?
No. Travel between home and a permanent workplace is ordinary commuting and does not qualify, however far it is. Travel to a temporary workplace, between sites in a working day, or to visit clients does qualify. The distinction is the workplace, not the distance.
Approved rates from gov.uk rates and thresholds for employers, and the increase from HMRC's announcement. Checked 23 September 2026 by Hadi. 2026/27 tax rates, England, Wales and Northern Ireland; Scottish taxpayers claim the same mileage at their own tax rates.