Can I claim mileage for commuting to work?

No. Ordinary commuting between your home and your normal workplace is specifically excluded from business mileage, however you travel. What counts is mileage for work journeys: visiting clients, travelling between different sites for your employer, attending training courses, or temporary workplaces. If you are sent to a temporary location for a limited period, that travel can qualify, but the home-to-base journey does not.

How do I claim mileage tax relief if my employer pays less than 55p?

If your employer pays below the HMRC rate, you can claim Mileage Allowance Relief on the shortfall. Multiply the shortfall per mile by your business miles, then claim tax relief at your marginal rate: 20%, 40% or 45%. Employees claim on form P87 (or via self-assessment if they already file one), and you can go back up to four tax years. For example, 10,000 miles paid at 45p leaves a 10p shortfall, worth £200 tax relief to a basic rate taxpayer.

Why is the rate lower after 10,000 miles?

The 10,000-mile threshold has existed since the AMAP system was introduced. HMRC assumes very high annual mileage means lower average running costs per mile, since fixed costs like insurance and depreciation are spread across more miles. The first 10,000 business miles are paid at 55p for 2026/27; everything above that is paid at 25p. The counter resets each tax year, not on your employment anniversary.

What records do I need for a mileage claim?

Keep a mileage log covering each business journey: the date, destination, purpose, and miles travelled, plus your starting odometer reading at the start of the tax year. Employers paying mileage allowance need these records for their own accounts, and HMRC can ask to see your log if you claim Mileage Allowance Relief. There is no single required format, a spreadsheet or mileage app is fine, as long as the journey detail is there.

Do I pay tax if my employer pays more than 55p per mile?

Yes. Anything your employer pays above the approved AMAP rate counts as taxable income and should appear on your P11D or in your PAYE tax code. For example, if your employer pays 65p per mile, the extra 10p per mile is treated as additional earnings and taxed at your marginal rate. The first 55p (for the first 10,000 miles) remains tax-free.

Updated 6 April 2026

Mileage Calculator · Free UK 2026/27

Calculate your tax-free mileage allowance at the new 55p HMRC rate, and claim tax relief on any shortfall from your employer. Updated for 2026/27.

✓ Free to use✓ New 55p rate✓ Tax relief included✓ Updated 2026/27

Mileage Calculator

Enter your details below. Your result updates instantly

Vehicle type

Business miles this tax year

miles

Your employer's mileage rate(pence per mile, leave blank if claiming the full HMRC rate)

Tax-free mileage allowance (HMRC)

£4,400.00

0.6p average per mile · £366.67/month

First 10,000 miles @ 55.00000000000001p

£4,400.00

Miles above 10,000 @ 25p

£0.00

Based on HMRC Approved Mileage Allowance Payments (AMAP) for 2026/27. Tax relief on a shortfall is claimed via HMRC (form P87 or self-assessment) and equals the shortfall multiplied by your marginal tax rate. Employer rates above the AMAP rate may create a taxable benefit. Figures are estimates, check gov.uk for your exact position.

How to Calculate UK Mileage Allowance

Quick Answer: For 2026/27, HMRC's approved mileage rate is 55p per mile for the first 10,000 business miles in cars and vans, then 25p per mile above that. Motorcycles are 24p and bicycles 20p per mile with no cap. Your employer can pay these amounts tax-free, and if they pay less, you can claim tax relief on the difference at your marginal rate.

2026/27 Mileage Rates

The car and van rate increased from 45p to 55p per mile for the 2026/27 tax year, the first rise since 2011. The rate covers all the running costs of using your own vehicle for work: fuel, insurance, depreciation, servicing and repairs. Payments up to the approved amount are tax-free; only payments above it become a taxable benefit.

HMRC Approved Mileage Allowance Payments (AMAP) 2026/27

Cars and vans, first 10,000 milesup from 45p	55p / mile
Cars and vans, above 10,000 miles	25p / mile
Motorcycles	24p / mile
Bicycles	20p / mile

Source: HMRC Approved Mileage Allowance Payments, gov.uk

Formula

Allowance = min(miles, 10,000) × 55p + max(0, miles − 10,000) × 25p | Relief = shortfall per mile × miles × tax rate

12,000 miles: 10,000 × 55p + 2,000 × 25p = £6,000 tax-free | Paid 45p for 10,000 miles: 10p × 10,000 × 20% = £200 relief

Worked Example: Community nurse, 9,500 business miles

Miles within the 10,000 threshold9,500 miles

Rate applied55p per mile

Tax-free allowance£5,225

Employer pays 40p shortfall15p per mile

Mileage relief (basic rate, 20%)£285

Relief on an employer shortfall is claimed from HMRC on form P87 (or via self-assessment) and can be backdated up to four tax years.

What Counts as a Business Mile

Business mileage is travel you make for work, visiting clients, driving between sites, attending meetings or training away from your normal base. Your ordinary commute between home and your permanent workplace never counts, even if you drive it. Temporary workplaces are treated differently: travel there can qualify if the assignment is limited in duration. If you use the same vehicle partly for private journeys, only the business proportion is claimable, which is why a dated mileage log matters.

Mileage Tax Relief on a Shortfall

Many employers still pay 40p, 45p or fuel-only arrangements. The gap between what they pay and the approved rate is called Mileage Allowance Relief. You do not get the shortfall paid directly; you claim tax relief on it, meaning HMRC repays the tax you overpaid: the shortfall in pounds multiplied by your marginal rate (20%, 40% or 45%). Claims are made on form P87 if you do not file a self-assessment, and HMRC allows backdating of up to four tax years, so a rate change like the move to 55p is worth checking against what your employer actually pays.

Frequently Asked Questions

For the 2026/27 tax year, the Approved Mileage Allowance Payment (AMAP) rate for cars and vans is 55p per mile for the first 10,000 business miles, then 25p per mile above that. Motorcycles qualify for 24p per mile and bicycles for 20p per mile, with no annual cap. The car and van rate rose from 45p to 55p for 2026/27, its first increase since 2011. Payments up to these rates are tax-free.