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Free toolUpdated 11 November 2026

Mileage allowance calculator

Work out your tax-free mileage, what you can claim back from HMRC if your employer pays less than the approved rate, and what it is worth if you are self-employed.
You are
Tax year
Vehicle

Not your normal commute to a permanent workplace.

Put 0 if they pay nothing.

Your income tax rate

Approved mileage, 2026/27

£3,300

tax free for 6,000 business miles

First 6,000 miles at 55p
£3,300
Your employer pays
£1,500
Mileage Allowance Relief to claim
£1,800
Tax back
£360

Claim this from HMRC online with form P87, or on your Self Assessment return. You can claim for the last four tax years.

Mileage rates at a glance

Vehicle2026/272027/28
Car or van, first 10,000 miles55p55p
Car or van, after 10,000 miles25p35p
Motorbike24p24p
Bicycle20p20p

The 2027/28 figures follow the October 2026 Budget, which still needs to pass into law. We assume the self-employed rate above 10,000 miles follows the employee rate, as it always has.

Keep a mileage log

HMRC can ask for proof. For each trip, note the date, where you went, why and the miles. A notes app or a spreadsheet is fine, and many mileage apps track it automatically.

Who this matters for

  • Delivery drivers and couriers, where mileage is often the biggest expense
  • Tradespeople, carers and anyone who drives between clients
  • Employees whose company pays less than 55p a mile

See the full list of expenses you can claim on a side hustle.

Questions

Common questions

What is the HMRC mileage rate for 2026/27?

55p a mile for the first 10,000 business miles in a car or van, and 25p a mile after that. Motorbikes are 24p and bicycles 20p. The 55p rate started on 6 April 2026, up from 45p.

What changes in April 2027?

The Budget on 28 October 2026 raised the rate for business miles above 10,000 in a tax year from 25p to 35p, from 6 April 2027. The 55p rate for the first 10,000 miles stays.

Can I claim if my employer pays less than 55p?

Yes. You can claim Mileage Allowance Relief on the difference. You get tax relief at your highest rate, so a basic rate taxpayer gets 20% of the shortfall back. Claim online with form P87, or on your Self Assessment return.

Does my commute count?

No. Travel between home and your permanent workplace is not business mileage. Trips to a temporary workplace, a client or a different site usually are.

How do self-employed people claim mileage?

You can use the same flat rates, called simplified expenses, instead of working out your actual vehicle costs. It covers fuel, insurance, servicing and wear. You cannot also claim those costs separately.

Sources

This tool gives an estimate for general information. It is not tax advice. Check your own position on GOV.UK or with an accountant.