Mileage Allowance Calculator
Calculate how much you can claim for business mileage using HMRC's Approved Mileage Allowance Payments (AMAP) rates.
HMRC rates for 2025/26 tax year
Trip Details
Rate drops from 45p to 25p after 10,000 miles
Common trips:
Your Claim
HMRC Approved Rates:
Track Mileage Automatically
AccountsOS tracks your business mileage and calculates claims automatically. Never miss a deduction again.
Get Started FreeHMRC Mileage Allowance Explained
If you use your personal vehicle for business journeys, you can claim tax relief using HMRC's Approved Mileage Allowance Payments (AMAP).
What Counts as Business Mileage?
- Visiting clients or customers
- Traveling to temporary workplaces
- Buying business supplies
- Attending business meetings
What Doesn't Count?
- Commuting to your regular workplace
- Personal errands during work
- Home to office journeys (if you have a permanent office)
Record Keeping
HMRC requires you to keep records of business journeys including date, destination, purpose, and miles traveled. AccountsOS can help you track this automatically.
Frequently Asked Questions
Common questions about UK mileage allowance and HMRC rates
For the 2025/26 tax year, HMRC's Approved Mileage Allowance Payment (AMAP) rates are: 45p per mile for cars and vans (first 10,000 miles), 25p per mile for cars and vans (over 10,000 miles), 24p per mile for motorcycles, and 20p per mile for bicycles. These rates have remained unchanged since 2011.
To claim mileage, you need to keep detailed records of each business journey including the date, destination, purpose of the trip, and miles traveled. If you're employed, your employer can reimburse you up to the AMAP rate tax-free. If you're self-employed or a company director, you claim the mileage allowance as a business expense on your tax return.
Business mileage includes journeys to visit clients or customers, traveling to temporary workplaces, attending business meetings, collecting business supplies, and traveling between different work locations. However, your regular commute from home to a permanent workplace does NOT count as business mileage.
No, if you have a company car, you cannot claim mileage allowance as the company already covers vehicle costs. However, your employer can reimburse you for fuel costs using HMRC's Advisory Fuel Rates instead. If you use your personal car for business alongside a company car, you can only claim mileage for trips made in your personal vehicle.
AMAP (Approved Mileage Allowance Payments) rates are for employees using their own vehicles for business travel - they cover fuel, insurance, wear and tear, and depreciation. Advisory Fuel Rates only cover fuel costs and are used when an employee uses a company car for business travel, or when an employer reimburses fuel costs for company car private use.
Your employer can pay you more than the AMAP rate, but any amount above the approved rate is taxable as a benefit. For example, if your employer pays 50p per mile instead of 45p, you'll pay tax on the extra 5p per mile. If you're self-employed, you can only claim the AMAP rate - you cannot claim actual vehicle running costs instead.
How This Calculator Works
This calculator applies HMRC's Approved Mileage Allowance Payment (AMAP) rates to your business miles to determine how much you can claim as a tax-free expense. The rates are designed to cover all costs of using your personal vehicle for business, including fuel, insurance, road tax, servicing, and depreciation.
Cars and Vans: Two-Tier Rate
The first 10,000 business miles in the tax year are reimbursed at 45p per mile. Any additional miles beyond 10,000 are reimbursed at the lower rate of 25p per mile. The calculator tracks your existing miles claimed this year to apply the correct rate to each portion.
Motorcycles: Flat Rate
Motorcycle business mileage is reimbursed at a flat rate of 24p per mile with no tiered threshold. This rate applies regardless of how many miles you travel.
Bicycles: Flat Rate
Business mileage by bicycle is reimbursed at 20p per mile. This covers wear and tear on your bicycle. The cycle to work scheme is a separate benefit.
If your employer pays you less than the AMAP rate, you can claim tax relief on the difference through Mileage Allowance Relief (MAR) on your Self Assessment return. If your employer pays nothing, you can claim the full AMAP rate.
Worked Example: 15,000 Business Miles
A sales consultant uses their personal car for client visits and travels 15,000 business miles in the 2025/26 tax year. Here is how the mileage allowance is calculated:
10,000 x £0.45
5,000 x £0.25
Tax Saving Impact
Self-Employed / Director
The £5,750.00 is claimed as a business expense, reducing taxable profit. At the 19% Corporation Tax rate, this saves £1,093.00 in CT. At the small company marginal rate of 26.5%, the saving is £1,524.00.
Employee (Not Reimbursed)
If your employer does not reimburse you, you can claim Mileage Allowance Relief via Self Assessment. A basic rate taxpayer saves £1,150.00 (20%), while a higher rate taxpayer saves £2,300.00 (40%) in income tax.
You can also claim an additional 5p per mile for each qualifying passenger who is also travelling on business. If you carry a colleague to the same meeting, add 5p per passenger per mile on top of the standard AMAP rate.
When to Use This Calculator
Monthly Expense Claims
Calculate the mileage allowance for business trips made during the month to include on your expense claim or company reimbursement request.
Year-End Tax Calculations
Total up your annual business mileage to claim the correct deduction on your Self Assessment tax return or company accounts.
Company Car vs Personal Car
Compare the mileage allowance you could claim using your personal car against the Benefit in Kind tax cost of a company car.
Budgeting for Business Travel
Estimate how much you can claim back before committing to driving for business purposes, helping you decide between driving and alternative transport.
Important Considerations for 2025/26
Rates Unchanged Since 2011
The AMAP rates (45p/25p for cars) have not changed since 2011. With fuel prices, insurance, and running costs rising significantly since then, the actual cost of running a vehicle often exceeds the allowance. However, you cannot claim more than the approved rates unless you use the actual cost method (only available to the self-employed in certain circumstances).
Mileage Log Requirements
HMRC requires you to keep a contemporaneous mileage log recording the date of each journey, the start and end locations, the purpose of the trip, and the miles travelled. If you are investigated, HMRC may request this log as evidence. Digital records and apps are accepted in place of a paper logbook.
Company Car Alternative
If you drive significant business miles, a company car may be worth considering. Electric company cars attract a very low Benefit in Kind rate (2% in 2025/26), making them highly tax-efficient. However, you cannot claim AMAP rates on journeys made in a company car - only Advisory Fuel Rates apply.
Electric Vehicle Mileage
The AMAP rates apply equally to electric, hybrid, petrol, and diesel vehicles. If you drive an electric car, the 45p/25p rate still applies even though your actual running costs are typically much lower. This can make EV ownership particularly advantageous for high-mileage business drivers.
Commuting Is Not Business Travel
Your regular journey between home and your permanent workplace does not qualify as business mileage and cannot be claimed. This includes directors travelling to a company registered office. Journeys to temporary workplaces (expected to last less than 24 months) do qualify.
Related Resources
What Is the Mileage Allowance?
Full breakdown of AMAP rates, eligibility rules, and how to claim.
Company Car vs Mileage Allowance
Detailed comparison to help you decide which is more tax-efficient for your situation.
Electric Car Through Limited Company
The tax advantages of running an electric company car including the 2% BIK rate.
Allowable Business Expenses UK
Complete guide to expenses you can claim through your limited company including travel.
Company Car Tax Calculator
Calculate the Benefit in Kind tax on a company car to compare with mileage claims.
Expense Claims Tool
Track and manage all your business expenses including mileage in one place.