Mileage Allowance Calculator, 2026/27
For directors and employees who use their own vehicle for business journeys, this calculator applies the HMRC approved mileage allowance payment rates to your annual business mileage, splitting miles above and below the 10,000 mile threshold.
The mileage allowance 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. AMAP rates 2026/27: £0.55 per mile for the first 10,000 business miles, then £0.25; motorcycles £0.24; bicycles £0.20. 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 mileage allowance
Miles at the higher rate
£0.55 per mileMiles at the lower rate
Threshold not reachedPassenger payments
£0.05 per mile, optionalIllustration 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
This calculator applies the HMRC approved mileage allowance payment (AMAP) rates for 2026/27. Cars and vans attract £0.55 per mile for the first 10,000 business miles in the tax year, dropping to £0.25 per mile after that. Motorcycles are a flat £0.24 per mile and bicycles £0.20 per mile, both with no mileage threshold.
If an employer pays at or below these rates, the whole payment is free of tax and National Insurance, and nothing needs to go on a P11D. If the employer pays more, the excess is taxable pay. If the employer pays less, or nothing, the employee can claim mileage allowance relief on the shortfall, which the separate mileage tax relief calculator on this site handles.
Carrying a colleague on a business journey allows an additional 5p per mile passenger payment, again tax-free if paid at or below that rate, but this is entirely optional for the employer to offer.
Company car versus own vehicle
AMAP only applies where the employee or director uses their own vehicle rather than a company car. If the company provides the car, mileage is instead reimbursed at the HMRC advisory fuel rates, and the vehicle itself is taxed as a benefit in kind based on its list price and emissions.
For many small company directors doing modest annual mileage, claiming AMAP on a personally owned car is more tax efficient than running a company car, because there is no benefit in kind charge at all, only the mileage payment itself.
Record keeping
HMRC expects a mileage log showing the date, destination, purpose and miles for each business journey, not just an annual total. Home to a permanent workplace does not count as business mileage; travel to a temporary workplace or between sites usually does.
Keeping this log alongside fuel receipts protects the claim if HMRC ever asks to see the working behind a mileage payment or an expense claim on the tax return.
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 AMAP mileage rate for 2026/27?
£0.55 per mile for the first 10,000 business miles in a car or van, then £0.25 per mile after that. The rate is set by HMRC and has not changed for several years.
Does the 10,000 mile threshold reset every year?
Yes. The threshold is per employee per tax year, so if you change employer mid-year the new employer applies the higher rate again from mile one unless miles from the previous employment are taken into account.
Can I claim mileage for a company car?
No, AMAP is only for personally owned vehicles. Company car mileage is reimbursed at the advisory fuel rates instead, and the car itself is taxed separately as a benefit in kind.
Is the passenger payment compulsory?
No, it is optional. An employer may choose to pay up to 5p per mile tax-free for carrying a fellow employee on a business journey, but there is no requirement to offer it.
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