Business mileage allowance calculator
Approved mileage rates: cars and vans 45p for the first 10,000 miles and 25p after, motorcycles 24p, bicycles 20p. Self-employed people using simplified expenses cannot also claim capital allowances on the same vehicle.
- Business miles8,000
- Rate45p then 25p
Mileage claim
£3,600.00
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How does the mileage allowance calculator work?
HMRC's approved mileage rates are 45p per mile for the first 10,000 business miles in a tax year and 25p per mile after that for cars and vans, 24p for motorcycles and 20p for bicycles. Self-employed people can use these simplified rates instead of claiming actual vehicle costs.
How it works
Business miles only
Only journeys made for business count: visiting clients, collecting stock, travelling between sites. Commuting from home to a permanent workplace does not, and a mileage log is the evidence HMRC expects.
Simplified versus actual costs
Self-employed people can claim mileage at the flat rates or claim a proportion of actual costs (fuel, insurance, repairs) plus capital allowances. You choose one method for each vehicle and generally stick with it.
Employees and company cars
Employers can pay the same rates tax free. If you pay your employees less, they can claim the difference as tax relief, and different rules apply to company cars and fuel.
Rates used, 2026/27
- Cars and vans, first 10,000 miles45p
- Cars and vans, after 10,000 miles25p
- Motorcycles24p
- Bicycles20p
Last checked November 2026 against GOV.UK: Simplified expenses. General information, not tax advice.
A worked example
12,000 business miles in a car gives a claim of £5,000: 10,000 miles at 45p (£4,500) plus 2,000 miles at 25p (£500).
Questions about this calculator
Can I claim mileage as a limited company director?
Yes. Your company can reimburse business mileage at the approved rate tax free, and the company deducts it as an expense. You need a mileage log.
What records do I need?
Date, start and end locations, purpose and miles for each journey, plus the odometer reading at the start and end of the tax year.
Do electric vehicles use different rates?
For the simplified mileage rates the figures are the same for cars and vans regardless of fuel type, although electric vehicles have separate rules for company car benefits and charging costs.
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