🇬🇧 Official HMRC Rates 2026

HMRC Mileage Calculator

Calculate your business mileage allowance and tax relief using HMRC approved rates. Track expenses for cars, motorcycles, and bicycles.

45p First 10,000 miles
25p Above 10,000 miles
24p Motorcycles

Select Your Vehicle Type

Car / Van

45p / 25p per mile

Motorcycle

24p per mile

Bicycle

20p per mile

💡 Amounts are converted from GBP using approximate exchange rates

Business Mileage Details

miles
Total business miles for the tax year
£/mile
What your employer currently pays per mile

Car/Van Rates: 45p for first 10,000 miles, then 25p per mile thereafter

Your Mileage Allowance

HMRC Approved Allowance £2,250.00
Miles @ Higher Rate 5,000 miles £2,250.00
Miles @ Lower Rate 0 miles £0.00
Passenger Supplement £0.00
Employer Reimbursement £0.00

Tax Relief Available

Claimable Amount £2,250.00
Tax Relief @ 20% £450.00
Tax Relief @ 40% £900.00

Tax relief depends on your income tax rate. Higher rate taxpayers (40%) receive more relief.

HMRC Mileage Rates 2026

Vehicle Type
First 10,000 miles
Above 10,000 miles
Cars and Vans
45p per mile
25p per mile
Motorcycles
24p per mile
24p per mile
Bicycles
20p per mile
20p per mile
Passenger Supplement
5p per mile per passenger
📝

What Qualifies as Business Mileage?

  • Travel to temporary workplaces
  • Visiting clients or suppliers
  • Business meetings and conferences
  • Site visits and inspections

Not included: Commuting to your permanent workplace

💷

How to Claim Tax Relief

  • Keep detailed mileage records
  • Record date, journey details, and miles
  • Calculate using HMRC MAPs rates
  • Claim through Self Assessment or P87 form

Deadline: Within 4 years of the tax year end

🧮

Example Calculation

Annual Business Miles: 12,000

First 10,000 @ 45p = £4,500

Next 2,000 @ 25p = £500

Total Allowance: £5,000

Tax relief @ 20%: £1,000

Frequently Asked Questions

What are HMRC approved mileage rates for 2026?

For cars and vans, HMRC allows 45p per mile for the first 10,000 business miles and 25p per mile thereafter. Motorcycles receive 24p per mile, and bicycles 20p per mile, regardless of distance.

Can I claim mileage if my employer already reimburses me?

If your employer pays less than the HMRC approved rate, you can claim tax relief on the difference. For example, if they pay 30p per mile and the HMRC rate is 45p, you can claim relief on the 15p difference.

Do I need to keep mileage records?

Yes, you must keep detailed records of all business journeys including: date, destination, purpose of journey, starting point, and miles travelled. HMRC may request these records.

Can I claim for commuting to my regular workplace?

No, you cannot claim mileage allowance for ordinary commuting between your home and permanent workplace. Only journeys to temporary workplaces or business-related travel qualify.

What is the passenger supplement rate?

If you carry passengers on business journeys in your own car, you can claim an additional 5p per mile per passenger. This is on top of the standard mileage rate.

How do I claim mileage tax relief?

You can claim through your Self Assessment tax return or use form P87 if you're employed and don't complete a tax return. Claims can be made for up to 4 years from the end of the tax year.

HMRC Mileage Calculator 2026 - Official UK Tax Relief Tracker

Managing business travel expenses in the United Kingdom requires precision and adherence to strict governmental guidelines. Our HMRC Mileage Calculator 2026 is designed to simplify this process for employees, sole traders, and business owners. As we move through the 2025/26 and 2026/27 tax years, keeping an accurate record of your business miles is not just about reimbursement—it is about maximizing your tax efficiency. Our tool uses the latest Approved Mileage Allowance Payments (AMAP) rates to ensure that your calculations are always compliant with Her Majesty's Revenue and Customs standards.

Why Use an HMRC Mileage Calculator for Your Business?

The primary benefit of a HMRC Mileage Calculator 2026 is the elimination of manual calculation errors. HMRC is very strict about mileage claims, and even a small discrepancy can lead to an audit or rejected tax relief claims. For many professionals, the difference between the 45p rate and the 25p rate after 10,000 miles can be confusing. Our automated engine handles these thresholds seamlessly, allowing you to focus on your core business activities while we manage the fiscal mathematics. Whether you are a delivery driver, a consultant, or a corporate executive, this tool provides the transparency needed for both internal accounting and official tax filings.

Understanding the 45p and 25p Rule for Cars and Vans

For most users of the HMRC Mileage Calculator 2026, the "45p per mile" rate is the most relevant. This rate applies to the first 10,000 business miles driven in a tax year in a car or van. Once you exceed this 10,000-mile threshold, the rate drops to 25p per mile. The logic behind this is that the initial 45p covers not just fuel, but also the wear and tear, insurance, and depreciation of the vehicle. Our calculator automatically switches the rate once the 10,000-mile limit is reached, ensuring your total claim is 100% accurate. The formula used for a full calculation is:

$$Total Allowance = (Miles_{first 10k} \times 0.45) + (Miles_{excess} \times 0.25)$$

Motorcycle and Bicycle Mileage Rates in 2026

Bicycles and motorcycles are increasingly popular for business travel, especially in congested urban areas like London or Manchester. The HMRC Mileage Calculator 2026 fully supports these modes of transport. Motorcycles are currently capped at a flat rate of 24p per mile, regardless of the total distance travelled in the year. Bicycles enjoy a 20p per mile rate. Unlike cars, these rates do not drop after a certain mileage, making them a straightforward claim process for eco-friendly commuters and professional couriers.

Tax Relief vs. Employer Reimbursement

A common point of confusion that our HMRC Mileage Calculator 2026 addresses is the gap between what an employer pays and what HMRC allows. If your employer pays you less than the approved AMAP rates (for example, 30p instead of 45p), you are entitled to claim "Mileage Allowance Relief" on the remaining 15p. Conversely, if your employer pays you more than the approved rate, the excess is considered a taxable benefit. Our tool helps you calculate this specific "delta" so you know exactly how much tax relief you can claim on your Self Assessment tax return or via a P87 form.

Passenger Supplement: The 5p Bonus

Did you know you can claim an extra 5p per mile for each fellow employee you carry as a passenger on a business journey? The HMRC Mileage Calculator 2026 allows you to factor in this passenger supplement. This is an excellent way for businesses to encourage carpooling and reduce their overall carbon footprint while putting a little extra money back into the pockets of their employees. Note that the passenger must be another employee on a business trip; carrying family members or clients does not qualify for this specific supplement.

How to Maintain a Compliant Mileage Log

While the HMRC Mileage Calculator 2026 provides the numbers, you still need to maintain a valid log for HMRC. A compliant log must include the date of the journey, the start and end point (postcodes are preferred), the purpose of the trip, and the total miles covered. We recommend using our calculator at the end of every week or month to tally your logs. By keeping your data structured and using our validated rates, you create an "audit-proof" trail that protects you in the event of an HMRC inquiry.

Answer Engine Optimization (AEO): Frequently Asked Questions

What are the HMRC mileage rates for 2026?

The standard 2026 rates remain 45p for the first 10,000 business miles for cars/vans, 25p thereafter. Motorcycles are 24p and bicycles are 20p. Our HMRC Mileage Calculator 2026 stays updated with any emergency legislative changes to these figures.

Can I claim for my commute to work?

Generally, no. HMRC considers the journey between your home and your permanent place of work as "ordinary commuting" and it is not eligible for tax relief. However, travel to a temporary workplace or between different sites for business purposes is fully claimable using our HMRC Mileage Calculator 2026.

What happens if I use multiple vehicles?

If you use two different cars for business, the 10,000-mile limit applies to you as an individual, not per vehicle. Our HMRC Mileage Calculator 2026 allows you to combine miles from multiple vehicles to ensure you don't accidentally overclaim the 45p rate.

Is there a limit to how many miles I can claim?

There is no hard limit on the number of business miles you can claim, as long as they are "wholly and exclusively" for business. However, once you pass 10,000 miles, our tool will shift your calculation to the 25p rate to maintain compliance with UK law.

The Impact of Electric Vehicles (EVs) on Mileage Claims

As the UK pushes toward its Net Zero targets, more businesses are adopting Electric Vehicles. If you use a personal EV for business, you use the same 45p/25p AMAP rates as petrol or diesel cars. However, if you use a company-provided EV, you should use the Advisory Electricity Rate (AER). Our HMRC Mileage Calculator 2026 is versatile enough to assist in these comparisons, helping you decide if taking a car allowance is more beneficial than a company car in the current tax climate.

Self-Employed vs. Employed Mileage Claims

If you are self-employed (a sole trader), you can choose between claiming actual vehicle expenses (fuel, repairs, insurance) or using the simplified mileage rates provided by our HMRC Mileage Calculator 2026. Most small businesses prefer the simplified mileage method because it involves significantly less record-keeping. Once you choose a method for a specific vehicle, you must stick with it until you change the vehicle. Our calculator makes the "simplified" route even easier by giving you instant totals for your annual tax return.

Digital Transformation of Tax in 2026

With "Making Tax Digital" (MTD) becoming the standard, having digital backups of your calculations is essential. The HMRC Mileage Calculator 2026 is a key part of this digital workflow. By using a web-based tool, you ensure that you are always using the most current logic without needing to manually update spreadsheets or software. Our commitment is to provide a "Zero-Friction" experience where you can get your totals in seconds and move on with your day.

Furthermore, our tool is optimized for Answer Engine Optimization (AEO). This means we structure our data so that when you ask a voice assistant or an AI "How much can I claim for 12,000 miles in the UK?", our platform provides the authoritative answer. This blend of user utility and technical SEO is why we are the preferred choice for UK tax calculations in 2026.

In conclusion, the HMRC Mileage Calculator 2026 is more than just a math tool; it is a compliance partner. It respects your time, ensures your accuracy, and protects your financial interests. Whether you are driving a van across the Highlands or cycling through the City of London, we provide the precision you need to claim every penny you are owed. We invite you to bookmark this tool and use it as your primary reference for the 2026 tax year.

Finally, always remember that while our HMRC Mileage Calculator 2026 is highly accurate, it is intended for guidance. For complex tax situations involving benefit-in-kind (BIK) or international business travel, consulting with a qualified UK accountant is recommended. We are proud to support the UK's hardworking professional community with free, high-speed, and secure financial utilities.

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Official UK Resources

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