Skip to content

Business mileage

Business mileage allowance calculator

Enter the business miles driven in your own vehicle and the pence per mile paid by your employer.

How much mileage allowance applies?

Enter this tax year's business miles and the rate your employer pays.

£5,500.00

HMRC approved amount

Employer pays
£4,500.00
Shortfall eligible for tax reliefThis is the eligible expense, not the cash refund.
£1,000.00
Taxable excess
£0.00
Calculation details

Assumptions

  • The vehicle is owned by the employee, rather than supplied as a company vehicle.
  • Miles are qualifying business journeys in the 2026 to 2027 tax year.

What is not included

  • Ordinary travel between home and a permanent workplace does not qualify.
  • The calculator does not turn an eligible shortfall into a cash refund because that depends on the employee's tax rate and circumstances.

Summary: For 2026 to 2027, HMRC allows 55p a mile for the first 10,000 business miles in an employee's own car and 25p after that. Different flat rates apply to motorcycles and bicycles.

55p
Car, first 10,000 business miles
HM Revenue and Customs, Rates and thresholds for employers 2026 to 2027 (as of 10 September 2026)
25p
Car, after 10,000 business miles
HM Revenue and Customs, Rates and thresholds for employers 2026 to 2027 (as of 10 September 2026)
24p
Motorcycle
HM Revenue and Customs, Rates and thresholds for employers 2026 to 2027 (as of 10 September 2026)
20p
Bicycle
HM Revenue and Customs, Rates and thresholds for employers 2026 to 2027 (as of 10 September 2026)

Checked on .

Approved mileage rates for your own vehicle

HMRC approved mileage allowance payments for 2026 to 2027
VehicleFirst 10,000 milesAfter 10,000 miles
Car or van55p per mile25p per mile
Motorcycle24p per mile24p per mile
Bicycle20p per mile20p per mile

Which journeys qualify?

  • Use business travel in an employee's own vehicle.
  • Do not include ordinary travel between home and a permanent workplace.
  • Keep the date, mileage, start postcode and end postcode for each journey.
  • The 10,000 mile threshold covers all qualifying car or van mileage in the tax year.

Common questions

Is the mileage shortfall the tax refund?
No. It is the amount eligible for Mileage Allowance Relief. The cash tax reduction depends on your tax rate and circumstances.
Does commuting count as business mileage?
Ordinary travel between home and a permanent workplace does not qualify. Keep journey dates, mileage and start and end postcodes for qualifying travel.

Related pages

Sources

Rates were checked against current HMRC publications on 10 September 2026.