Calculate your mileage allowance using HMRC approved rates for 2026/27.
Mileage breakdown
First 10,000 miles at 45p£4,500.00
2,000 miles at 25p£500.00
Passenger supplement£0.00
Total mileage allowance£5,000.00
Tax relief (if not reimbursed by employer)
Basic rate taxpayer (20%)£1,000.00
Higher rate taxpayer (40%)£2,000.00
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HMRC Approved Mileage Rates 2026/27
Vehicle Type
First 10,000 miles
Over 10,000 miles
Car or Van
45p
25p
Motorcycle
24p
24p
Bicycle
20p
20p
Passenger (per person)
5p
5p
Quick Mileage Allowance Lookup (Cars)
Business Miles
Allowance
Tax Relief (20%)
How HMRC Mileage Allowance Works
HMRC Approved Mileage Allowance Payments (AMAPs) let employees claim a tax-free amount for using their own vehicle for business journeys. The rates are designed to cover the cost of fuel, wear and tear, insurance, and depreciation.
Car and Van Rates
First 10,000 miles: miles x 45p = allowance Over 10,000 miles: miles x 25p = allowance
The threshold is cumulative across the tax year (6 April to 5 April). For example, if you drive 12,000 business miles, the first 10,000 are paid at 45p and the remaining 2,000 at 25p. This gives a total allowance of £5,000.
Motorcycle and Bicycle Rates
Motorcycle: miles x 24p = allowance Bicycle: miles x 20p = allowance
Motorcycles and bicycles use a flat rate regardless of how many miles you travel. There is no threshold or reduced rate after 10,000 miles.
Passenger Supplement
Passengers x miles x 5p = supplement
If you carry fellow employees on business trips, you can claim an extra 5p per mile for each qualifying passenger. The passenger must be travelling for business purposes. This supplement is separate from the main mileage allowance and does not affect the 10,000 mile threshold.
Claiming Tax Relief
If your employer pays you less than the HMRC approved rate (or nothing), you can claim Mileage Allowance Relief (MAR) on the shortfall. The tax relief is calculated at your income tax rate. A basic rate taxpayer saves 20p for every £1 of unclaimed allowance. A higher rate taxpayer saves 40p per £1. You can claim through self-assessment or using HMRC form P87.
Mileage Allowance FAQs
What are the HMRC approved mileage rates for 2026/27?
For the 2026/27 tax year, HMRC approved mileage rates are: Cars and vans get 45p per mile for the first 10,000 business miles and 25p per mile after that. Motorcycles get a flat rate of 24p per mile. Bicycles get a flat rate of 20p per mile. There is also an additional 5p per mile passenger supplement for carrying fellow employees on business journeys.
How does the 10,000 mile threshold work for cars?
The 10,000 mile threshold applies to the total business miles you drive in a single tax year (6 April to 5 April). Your first 10,000 business miles are paid at 45p per mile. Any miles above 10,000 in the same tax year are paid at the lower rate of 25p per mile. The threshold resets at the start of each new tax year.
Can I claim mileage tax relief if my employer does not reimburse me?
Yes. If your employer pays you less than the HMRC approved mileage rate, or nothing at all, you can claim Mileage Allowance Relief (MAR) on the difference. You claim this through your self-assessment tax return or by contacting HMRC using form P87. The tax relief is calculated at your marginal income tax rate: 20% for basic rate taxpayers and 40% for higher rate taxpayers.
What counts as a business mile for HMRC mileage claims?
Business miles include travel between different workplaces, travel to temporary workplaces, and travel required by your duties such as visiting clients. Your regular commute from home to your permanent workplace does not count as business mileage. If you work from home as your main base and travel to an office or client site, those journeys may count as business miles.
What is the passenger supplement and who qualifies?
The HMRC passenger supplement is an extra 5p per mile that can be claimed when you carry a fellow employee in your car or van on a business journey. The passenger must be travelling for business purposes, not just getting a lift. Each qualifying passenger adds 5p per mile to your claim. This is a tax-free payment and does not affect the 10,000 mile threshold calculation.