Mileage Allowance Calculator, 2026/27

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 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.