Mileage allowance calculator (2026/27 HMRC rates)

HMRC mileage rates for 2026/27

GOV.UK publishes flat rates per business mile. For cars and goods vehicles (vans) the rate is 55p a mile for the first 10,000 miles in the tax year, then 25p a mile after that. The 55p rate applies from 6 April 2026; before that date the first-10,000-mile rate was 45p. Motorcycles are 24p a mile and the 10,000-mile switch doesn't apply to them. The approved rate for employees using their own bicycle is 20p a mile.

Many older pages still say 45p. That was correct for travel before 6 April 2026, and the calculator keeps a "before 6 April 2026" setting for earlier claims. For anything from 6 April 2026, use 55p for the first 10,000 miles. These figures come from GOV.UK's pages on simplified expenses for the self-employed and on mileage allowance payments for employees' own vehicles.

Who can use these rates?

Self-employed sole traders and partners can use simplified expenses: a flat rate per mile instead of working out the actual costs of buying and running a vehicle (insurance, repairs, servicing, fuel). GOV.UK says you can use it for cars, vans and motorcycles. You can't use it for a vehicle you have already claimed capital allowances for, or included as an expense when working out profits. Once you use flat rates for a vehicle you must carry on doing so for as long as you use that vehicle in the business. You can claim other travel costs, such as train fares and parking, on top.

Employees using their own vehicle (including some agency and umbrella workers) can be paid up to an approved amount tax-free using the same rates. If you are paid less than the approved amount you may be able to claim tax relief on the difference. Whether you are an employee or self-employed matters here; our guide on umbrella vs self-employed invoicing explains the difference for invoicing.

Worked examples

1. 5,000 miles between sites in a van, 2026/27. 5,000 × 55p = £2,750.00.

2. 11,000 miles. 10,000 × 55p = £5,500 and 1,000 × 25p = £250, so £5,750.00. This is the same pattern as the GOV.UK example, which shows the lower rate applying only to miles over 10,000.

3. Crossing the line mid-year. You have already claimed 9,800 miles this tax year and drive another 500. The first 200 miles are at 55p (£110) and the other 300 at 25p (£75), a total of £185.00. Put 9,800 in "Miles already claimed" to see this.

4. Motorcycle. 1,234 miles × 24p = £296.16.

5. What it saves. A claim of £5,750 reduces your taxable profit by £5,750. For a basic-rate taxpayer that is roughly 20% Income Tax plus 6% Class 4 National Insurance, about £1,495. The calculator uses those rates as an estimate, but your real saving depends on your total profit.

What counts as a business mile?

Business miles are journeys made for your work: driving between jobs, to a customer's site, to a merchant to collect materials or to a supplier. Ordinary commuting between home and a permanent workplace is generally not a business journey. If you work at a different site each week, travel to temporary workplaces is often business travel, but the rules are detailed, so check GOV.UK or ask an accountant for your case. Whatever you claim, keep a log: date, start and finish, miles and the reason for the journey.

Mileage on an invoice

Don't confuse the tax claim with charging a customer. Mileage you claim as an expense reduces your tax. If you want a client to pay for travel, it must be agreed with them and shown on the invoice as its own line. See travel time and mileage on invoices.