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Mileage Tax Relief Calculator (55p a mile rule)

Use your own car for work journeys (not commuting) and HMRC lets you claim tax relief up to 55p a mile for the first 10,000 miles (45p before 2026/27) and 25p after that. If your employer pays less than the approved rates, you can claim relief on the shortfall.

Motorcycles (24p) and bicycles (20p) have their own rates. Select every year you want to include — claims can reach back four tax years.

Written by RefundCalculator Editorial TeamLast checked

Estimate your mileage relief

Business miles in your own vehicle (not commuting), per tax year, against what your employer paid you.

Vehicle
Tax years to include

Claims can go back four tax years. Each year uses its own rates.

Where do you pay income tax?

Journeys that count — and ones that never do

  • Counts: travel between workplaces, visits to clients or suppliers, journeys to a temporary workplace.
  • Counts: errands your employer requires mid-shift (bank runs, collections) in your own vehicle.
  • Never counts: ordinary commuting from home to your normal, permanent workplace.
  • Rule of thumb: a 'temporary workplace' is one you attend for under 24 months.
  • You must use your own vehicle — company car drivers follow fuel advisory rates instead.

The approved mileage rates

HMRC's Approved Mileage Allowance Payments (AMAP) for cars and vans rose from 45p to 55p a mile for the first 10,000 business miles from 6 April 2026 (announced 21 May 2026) — the first change since 2011. Earlier tax years stay at 45p; every year pays 25p a mile after 10,000; motorcycles get a flat 24p; bicycles 20p. The rate is meant to cover fuel, wear, insurance and depreciation in one figure.

If your employer reimburses you at the full approved rate, there is nothing left to claim — the relief targets the shortfall, not the mileage itself.

How employer payments change the claim

Say you drove 5,000 business miles and your employer paid 20p a mile. In 2026/27 the approved amount is 5,000 × 55p = £2,750; you received £1,000; the shortfall of £1,750 qualifies for relief — worth £350 to a basic-rate taxpayer. Relief is the tax on the shortfall, not the shortfall itself, which is where most 'free £1,750!' adverts mislead people. Our estimator shows exactly this working for your numbers.

What this estimate can't tell you

  • Ordinary commuting never counts.
  • You need a mileage log if HMRC asks.
  • Relief is the tax on the shortfall, not the shortfall itself — 1,000 unpaid miles at 55p means about £110 back at 20%.

The free HMRC route

Everything this calculator estimates can be claimed directly from HMRC at no cost — usually online in a few minutes or via a short form. Refund companies charge a percentage of money that is already yours. We never handle claims and are not affiliated with HMRC.

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