Business Mileage Calculator, 2026/27
Directors and employees using their own vehicle for business journeys can claim tax-free mileage at HMRC's approved rates. Enter your annual business mileage and vehicle type to see what you can claim without triggering a taxable benefit.
The business mileage calculator runs on the rates and thresholds HMRC has published for the 2026/27 tax year, so the figures you see reflect the position your company is actually filing on rather than a historic set of bands. Change any input and the result recalculates immediately, with no sign-up and nothing sent anywhere.
If you are a director of a UK limited company, use it as a first look before a decision rather than as the decision itself. Approved rates for 2026/27: cars and vans £0.55 per mile for the first 10,000 business miles then £0.25 per mile, motorcycles £0.24 per mile, and bicycles £0.20 per mile. Real company positions bring in other income, reliefs, group structures and prior year adjustments that a single page of inputs cannot see, which is why the workings are written out below under personal & self assessment tax. Read those, then check the numbers against your own accounts, and speak to us if anything looks materially different from what you expected.
Last reviewed 12 September 2026 for the 2026/27 tax year. Reviewed by Waqas Sagar, Member of ICAEW, Fellow of ACCA, Fellow of AAT.
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Result, 2026/27
Tax-free approved mileage amount
Amount your employer is paying
Mileage Allowance Relief available
Passenger payment (tax-free)
At £0.05 per mileIllustration only, figures are based on the rates you have selected and the information entered. Please check your own position with us before acting.
Estimates for the 2026/27 tax year using published GOV.UK rates. Switch between 2026/27 and 2025/26 above.
How this is calculated
HMRC's Approved Mileage Allowance Payments let employers reimburse business mileage tax-free up to set rates. For cars and vans this is £0.55 per mile for the first 10,000 miles in the tax year, dropping to £0.25 per mile after that, regardless of the car's engine size or fuel type.
Motorcycles are reimbursed at a flat £0.24 per mile with no mileage threshold, and bicycles at £0.20 per mile. A passenger who is also an employee travelling on the same business journey can be reimbursed an extra £0.05 per mile, tax-free.
The calculator multiplies your annual business mileage by the relevant rate, applying the reduced rate to any miles above the 10,000 mile threshold for cars and vans, then compares that approved figure against what you say your employer actually pays.
What happens if the amounts do not match
If your employer pays less than the approved rate, or nothing at all, you can claim Mileage Allowance Relief from HMRC for the shortfall, usually through your self-assessment return or a form P87 if you do not otherwise need to file a return.
If your employer pays more than the approved rate, the excess is treated as a taxable benefit and should be reported on a P11D, with tax and Class 1A National Insurance due, so consistently overpaying mileage without adjusting for this can create unexpected liabilities at year end.
Director and company considerations
For a limited company, reimbursing directors and employees at or below the approved rates is a straightforward, fully deductible business expense with no payroll reporting needed, which makes it one of the simplest ways to extract value from the business tax efficiently.
Keeping a mileage log with dates, destinations and business purpose is essential, since HMRC can ask for evidence of the journeys claimed, particularly where mileage claims form a significant part of a director's overall remuneration.
What this means for your company
Treat the result as a planning figure for the 2026/27 tax year. If it changes what you were about to do, take a director's salary, a dividend, a large asset purchase or a filing decision, check it against your own accounts first. We can review the position with you and confirm the tax treatment before you commit.
Frequently asked questions
What is the approved mileage rate for a car in 2026/27?
£0.55 per mile for the first 10,000 business miles in the tax year, then £0.25 per mile after that, regardless of the car's engine size, fuel type or whether it is electric.
Can I claim mileage if I use my own electric car?
Yes. The same approved mileage rates apply to electric, hybrid and petrol or diesel cars; HMRC does not currently operate a separate mileage rate for electric vehicles used privately for business trips.
What if my employer pays less than the approved rate?
You can claim Mileage Allowance Relief for the difference between what you were paid and the approved rate, usually via your self-assessment return or a P87 form if you do not already file a return.
Do I need to keep records?
Yes. HMRC expects a mileage log recording the date, destination, purpose and mileage of each business journey, since this is the evidence needed to support both employer reimbursements and any personal tax relief claim.
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