Mileage Allowance Calculator United Kingdom

If you drive your own car for work, HMRC lets you claim a flat rate per mile instead of tracking fuel and running costs: the Approved Mileage Allowance Payment, or AMAP. This calculator applies the 2026/27 rates to your annual business miles and shows what you can claim, and how much tax relief is due if your employer pays less than the approved amount.

How the AMAP rates work

Cars and vans have two rates. The first 10,000 business miles in a tax year are worth 55p each, up from 45p before 6 April 2026, and every mile after that is worth 25p. The count resets on 6 April. The rate is meant to cover everything, including fuel, insurance, servicing, wear and depreciation, which is why it steps down after 10,000 miles once the fixed costs are covered. Motorcycles use a flat 24p and bicycles 20p; the calculator concentrates on the car and van rates that apply to most people.

Employees versus the self-employed

A self-employed sole trader claims the approved amount as a business expense, reducing taxable profit. An employee reimbursed at the full rates pays no tax on the payments. If the employer pays less, for example a flat 25p, the employee can claim tax relief on the shortfall through Self Assessment or form P87. You do not get the shortfall back in cash; you get relief at your marginal rate, so a £3,000 shortfall is worth £600 to a basic rate taxpayer or £1,200 to a higher rate taxpayer. Enter your employer’s rate and your tax band to see this figure.

What counts as a business mile

Only genuine business travel qualifies: driving to a temporary workplace, between sites or to see clients. Your ordinary commute from home to a permanent workplace does not count, and this is the most common mistake. If your employer already pays for fuel through a fuel card, you cannot also claim AMAP on the same journeys. Keep a log of dates, destinations and miles; HMRC can ask to see it, and a record kept at the time is far easier to defend than one reconstructed later.

Passenger payments and other rates

If you carry a colleague on the same business journey, your employer can pay an extra 5p a mile per passenger tax-free, but you cannot claim tax relief if the employer does not pay it. The car and van rates apply whatever the fuel type, so electric, hybrid and petrol cars all use the same rates when you drive your own vehicle. They are separate from the advisory fuel rates for company cars, where the employer owns the vehicle, which often causes confusion. Motorcycles and bicycles have flat rates of 24p and 20p with no 10,000-mile step.

A worked example

You drive 12,000 business miles in the year. The first 10,000 are worth £5,500 and the other 2,000 are worth £500, an approved allowance of £6,000. If you are self-employed, that £6,000 comes off your taxable profit. If you are employed and your company pays 25p a mile, £3,000, you have a £3,000 shortfall, and as a higher rate taxpayer you can reclaim £1,200 of tax on it.

How to use the calculator and keep records

Enter your annual business miles to see the approved allowance and how it splits between the two rates. If your employer reimburses you below the approved rate, open the advanced options and enter the pence per mile it pays and your tax rate, and the calculator shows the shortfall and the relief you can claim. To make a claim you need evidence: a log of the date, start and end points, purpose and miles of each business journey, plus any reimbursement you received. Claims can usually be backdated up to four tax years.

For the self-employed, the approved allowance is a deduction from taxable profit, worth that amount times your marginal Income Tax rate and, where relevant, Class 4 National Insurance. For an employee, what matters is the shortfall between the approved allowance and what the employer pays, and the tax relief on it. If your employer pays exactly the approved rates there is nothing to claim, and anything paid above them is taxable.

Assumptions and limitations

This is a planning estimate. It uses the 2026/27 AMAP car and van rates and the 10,000-mile threshold, stored as parameters sourced from HMRC and reviewed each tax year. It assumes every mile entered is an allowable business mile and does not model passenger payments or the interaction with a company fuel benefit. Relief on a shortfall depends on your circumstances, so check the current HMRC guidance or ask an accountant before filing.

About This Mileage Allowance Calculator

Use this mileage allowance calculator to get an instant, accurate estimate. The figures follow official GOV.UK guidance and every rate and threshold is kept up to date for 2026. Adjust the inputs above to match your situation, or browse all our calculators to plan your next step.