Mileage Allowance Relief Calculator

Calculate HMRC approved mileage payments and the tax relief you can claim on business journeys.

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Your result

Tax relief you can claim£400.00
HMRC approved amount£5,000.00
Paid by employer£3,000.00
Shortfall£2,000.00

Updates as you type. Based on 2025/26 UK figures where relevant.

How this is worked out

HMRC rates are 45p a mile for the first 10,000 business miles by car and 25p after, 24p for motorbikes and 20p for bicycles. If your employer pays less, you can claim tax relief on the gap.

Tips

  • UK MPG uses imperial gallons (4.546 litres), which differ from US gallons.
  • HMRC's approved mileage rate is 45p per mile for the first 10,000 business miles.
  • Home EV charging on an off-peak tariff is usually far cheaper than public rapid chargers.

Frequently asked questions

How does the mileage Allowance Relief Calculator work?

HMRC rates are 45p a mile for the first 10,000 business miles by car and 25p after, 24p for motorbikes and 20p for bicycles. If your employer pays less, you can claim tax relief on the gap.

What MPG should I use?

Use your real-world figure from your car's trip computer if you can; official figures are often optimistic.

Can I claim for commuting miles?

No. Normal commuting to a permanent workplace doesn't count as business mileage.

How often do HMRC mileage rates change?

Rarely. The 45p rate has been unchanged for many years, but always check GOV.UK.

This calculator gives an estimate for general information. It isn't financial, tax, legal or medical advice. Check official figures on GOV.UK or NHS.uk, or speak to a qualified adviser.