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Enter your business mileage and employer rate to calculate your allowance and any tax relief.
Calculate the HMRC approved mileage allowance on your business miles, compare it to what your employer pays, and find out if you can claim Mileage Allowance Relief (MAR) tax relief.
Enter your business mileage and employer rate to calculate your allowance and any tax relief.
For cars and vans: 45p per mile for the first 10,000 business miles in a tax year, then 25p per mile above 10,000 miles. Motorcycles: 24p per mile (all miles). Bicycles: 20p per mile. These rates have not changed for many years.
If your employer pays less than the HMRC approved rate, you can claim tax relief on the shortfall. For amounts under £2,500 use form P87. For larger amounts or if you complete Self Assessment, claim on your tax return. You can claim for the current and previous 4 tax years.
Any mileage payment above the approved HMRC rate is treated as taxable income (excess AMAPs). Your employer should deduct PAYE and NI on the excess amount. You should see it reported on your P11D or payslip.
For informational purposes only · Not financial advice · HMRC mileage rates 2026/27