Mileage Allowance Calculator

Q: What counts as business miles vs commuting?

Business miles are journeys made as part of your work duties — visiting clients, travelling between sites, or attending meetings away from your normal workplace. Commuting (home to your permanent workplace) does not count and cannot be claimed. Travel to a temporary workplace (under 24 months) can count as business travel.

Q: How do self-employed mileage expenses work?

Self-employed individuals can choose between simplified expenses (AMAP flat rates: 45p/25p for cars, 24p motorcycles, 20p bicycles) or actual car costs (fuel, insurance, MOT, repairs, depreciation multiplied by business use percentage). Once you choose a method for a vehicle, you must stick with it for that vehicle.

Q: How do I claim mileage allowance relief?

Employees can claim via Self Assessment (employment section) or using form P87 if they don't file a tax return. Claims can be backdated up to 4 years. Self-employed individuals include mileage in the self-employment section of their Self Assessment. Keep a mileage log and records for at least 5 years.

Calculate your mileage tax relief for 2025/26. See HMRC AMAP rates for cars, motorcycles, and bicycles. Claim the difference if your employer pays less than the approved rate, or compare simplified expenses vs actual costs if self-employed.

Calculate your mileage tax relief based on HMRC AMAP rates

Annual business miles

Business miles only (not commuting)

Vehicle type

Cars/vans: 45p first 10k, 25p after. Motorcycles: 24p. Bicycles: 20p.

Employer mileage rate

p/mile

Enter 0 if employer pays nothing

Your income tax band

Determines your tax relief rate

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How to Use This Calculator

Mileage Claim tab

Enter your annual business miles, vehicle type (car, motorcycle, or bicycle), and employer mileage rate (enter 0 if your employer pays nothing). The calculator works out your AMAP entitlement, compares it to what your employer pays, and shows the tax relief you can claim on the shortfall. Expand "More options" to change your tax band.

Over 10,000 Miles tab

For drivers exceeding 10,000 business miles per year, the AMAP rate for cars drops from 45p to 25p on every mile above 10,000. This tab breaks down the split-rate calculation clearly, shows your total AMAP entitlement, and compares it against your employer's flat-rate payment to calculate the full tax relief available.

Simplified vs Actual tab

Self-employed? Choose between HMRC simplified expenses (flat AMAP rates) or claiming actual car costs (fuel, insurance, MOT, repairs, depreciation) multiplied by your business use percentage. The calculator shows which method gives you the larger deduction and how much extra tax you save.

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The Formula

HMRC Approved Mileage Allowance Payments use flat rates per business mile:

Cars/vans: 45p × first 10,000 miles + 25p × remaining miles
Motorcycles: 24p × all business miles
Bicycles: 20p × all business miles

Tax Relief = (AMAP Entitlement − Employer Payment) × Your Tax Rate

If employer pays MORE than AMAP:
Tax Due = (Employer Payment − AMAP Entitlement) × Your Tax Rate

Self-employed actual costs:
Deduction = (Fuel + Insurance + MOT + Repairs + Depreciation) × Business Use %

The key point is that AMAP rates are per mile, not per journey. You multiply the rate by your total annual business miles. If your employer reimburses you less than the AMAP rate, you claim tax relief on the difference. If your employer pays more, the excess is taxable as a benefit in kind.

For self-employed individuals, the choice between simplified and actual costs is permanent for each vehicle. Simplified expenses are easier to track but actual costs may produce a larger deduction if your running costs are high relative to your mileage.

Example

James — sales rep, 15,000 business miles/year, employer pays 25p/mile flat

James is a higher-rate taxpayer (40%) who drives 15,000 business miles per year visiting clients. His employer reimburses him at a flat rate of 25p per mile for all journeys.

AMAP breakdown

First 10,000 miles at 45p£4,500

Remaining 5,000 miles at 25p£1,250

Total AMAP entitlement£5,750

Employer pays (15,000 × 25p)£3,750

Shortfall£2,000

Tax relief at 40% (higher rate)£800

James can claim £800 in tax relief by submitting a P87 form or including it on his Self Assessment return. Many employees miss this claim entirely, leaving hundreds of pounds on the table each year.

If employer paid nothing

Full AMAP entitlement£5,750

Tax relief at 40%£2,300

If James’s employer paid no mileage at all, he could claim the full £5,750 shortfall, saving £2,300 in tax.

FAQ

What are HMRC Approved Mileage Allowance Payments (AMAP)? ▼

AMAP rates are the maximum amounts employers can pay employees tax-free for business miles driven in their own vehicle. For 2025/26, the rates are: cars and vans 45p per mile for the first 10,000 miles and 25p per mile thereafter, motorcycles 24p per mile, and bicycles 20p per mile. These rates have been unchanged since 2012. If your employer pays less than the AMAP rate, you can claim tax relief on the difference. Source: HMRC.

Can I claim mileage tax relief if my employer pays nothing? ▼

Yes. If your employer does not reimburse you for business mileage at all, you can claim the full AMAP rate as Mileage Allowance Relief (MAR). For example, 8,000 business miles in a car would give you an AMAP entitlement of £3,600 (8,000 × 45p). At the basic rate of 20%, that’s £720 in tax relief. You can claim via Self Assessment or by sending form P87 to HMRC if you don’t file a tax return.

What counts as business miles vs commuting? ▼

Business miles are journeys you make as part of your work duties — for example, travelling between work sites, visiting clients, or attending meetings away from your normal workplace. Commuting does not count. Your regular journey from home to your permanent workplace is “ordinary commuting” and cannot be claimed. However, if you travel from home directly to a temporary workplace (a site you attend for less than 24 months), that can count as business travel. Keep a detailed mileage log with dates, destinations, and purpose.

How do self-employed mileage expenses work? ▼

Self-employed individuals have two options. Simplified expenses: use the same AMAP flat rates (45p/25p for cars, 24p for motorcycles, 20p for bicycles) — no need to track individual costs. Actual costs: add up all vehicle running costs (fuel, insurance, road tax, MOT, repairs, depreciation/capital allowances) and multiply by the percentage of business use. Once you choose a method for a particular vehicle, you must stick with it for that vehicle. Simplified expenses are easier but actual costs may give a larger deduction if your costs are high.

How do I claim mileage allowance relief? ▼

Employees: If you file a Self Assessment tax return, include your mileage claim in the employment section. If you don’t file Self Assessment, you can claim using form P87 (available on gov.uk) either online or by post. Claims can be backdated up to 4 years. Self-employed: Include your mileage expenses (simplified or actual) in the self-employment section of your Self Assessment tax return. Keep records for at least 5 years including a mileage log, receipts for actual costs, and details of business journeys.

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