Simple Salary / Mileage allowance calculator
Mileage allowance calculator
Work out the tax-free mileage allowance for business journeys in your own car, van, motorbike or bicycle, and what you can claim if your employer pays less than the approved rate.
What are the mileage rates for 2026/27?
55p a mile for the first 10,000 business miles in a car or van and 25p a mile after that, 24p for motorcycles, 20p for bicycles, plus 5p a mile for each colleague you carry. The car rate rose from 45p on 6 April 2026, the first change since 2011.
What counts as a business journey?
Travel you have to make for work: to a temporary workplace, between sites, to visit clients. Ordinary commuting between home and your permanent workplace does not count, and neither does private travel.
My employer pays less than the approved rate. What can I do?
Claim Mileage Allowance Relief on the difference. If you drove 8,000 miles and were paid 30p a mile, you were paid £2,400 against an allowance of £4,400.00, so you can claim tax relief on £2,000.00: worth £400.00 to a basic rate taxpayer. Claim online through HMRC or on your Self Assessment return.
Do I need to keep records?
Yes: the date, the start and end points, the purpose and the miles for each journey. A simple spreadsheet or a mileage app is enough. HMRC can ask for it for up to six years.
Rates last checked against gov.uk on 13 October 2026.
Sources
Please note
Approved rates for employees using their own vehicle and the simplified flat rate for the self-employed. Company cars use different advisory fuel rates.