Methodology

UK Mileage Calculator applies published HMRC mileage rates to the business miles entered by the user. Rates and source material were last checked on 18 September 2026.

2026/27 rates

For employee Approved Mileage Allowance Payments, cars and vans use 55p per mile for the first 10,000 business miles in the tax year and 25p thereafter. Motorcycles use 24p per mile and bicycles use 20p per mile.

For self-employed simplified vehicle expenses, eligible cars and goods vehicles use 55p for the first 10,000 business miles and 25p thereafter. Motorcycles use 24p per mile. The self-employed simplified-expenses rules do not use a bicycle mileage rate.

2025/26 rates

The previous first-10,000-mile car and van rate was 45p. The rate after 10,000 miles remained 25p, motorcycles remained 24p and the employee bicycle rate remained 20p.

Crossing the 10,000-mile threshold

The calculator first uses the business miles already entered for the tax year, then applies the first-tier rate only to the portion of the new mileage that remains below 10,000 miles. Any remaining car or van miles are calculated at 25p.

Employee Mileage Allowance Relief estimate

For employee mode, the calculator subtracts the employer reimbursement entered from the HMRC approved amount for the mileage being calculated. A positive shortfall is shown as potential Mileage Allowance Relief. The optional tax-saving estimate multiplies that shortfall by the Income Tax rate entered by the user. It is an illustration, not a calculation of the user's complete tax liability.

Sources

HMRC: Travel — mileage and fuel rates and allowances

GOV.UK: Simplified expenses — vehicles

GOV.UK: Vehicles you use for work

Testing and rounding

Money is rounded to the nearest penny. Automated tests cover both tax years, the 10,000-mile boundary, motorcycle and cycle rates, employee reimbursement shortfalls and reimbursements above the approved amount.

Limitations

The tool does not decide whether an individual journey qualifies as business travel, does not model associated employments or every multi-vehicle edge case, and does not calculate company-car advisory fuel rates. Users should check HMRC guidance where their circumstances are unusual.