Mileage claim calculator 2026/27
Work out your business mileage tax relief at HMRC's simplified rates, and the tax it saves you.
Business mileage tax relief
Enter your business miles for the tax year. The car rate rose to 55p per mile (first 10,000 miles) from 6 April 2026.
| First 10,000 miles | 8,000 × 55p = £4,400 |
| Miles over 10,000 | 0 × 25p = £0 |
| Total mileage allowance | £4,400 |
Uses HMRC simplified mileage rates for 2026/27. Estimates only, not financial advice. Source: gov.uk simplified expenses: vehicles.
How the mileage rates work
If you drive for business as a sole trader, you can claim a flat amount per mile instead of working out the actual cost of fuel, insurance, servicing and wear. This is the simplified mileage method, and for most freelancers it's far less hassle than keeping every fuel receipt.
The rates for 2026/27:
| Vehicle | Rate | Applies to |
|---|---|---|
| Car or van | 55p per mile | First 10,000 business miles |
| Car or van | 25p per mile | Business miles over 10,000 |
| Motorcycle | 24p per mile | All business miles |
| Bicycle | 20p per mile | All business miles |
The car and van rate went up from 45p to 55p per mile on 6 April 2026, backdated to the start of the tax year. It was part of a package aimed at motorists after fuel prices rose. The 25p rate for miles above 10,000 stayed the same, and the motorcycle and bicycle rates didn't change.
Worked example: 8,000 car miles
Say you drove 8,000 business miles this year in your car. All of it falls within the first 10,000 miles, so you claim 8,000 x 55p = £4,400. That £4,400 comes off your taxable profit. If you're a basic-rate sole trader, your marginal rate is 26% (20% Income Tax plus 6% Class 4 NI), so the claim saves you about £1,144 in tax. A higher-rate taxpayer on the same miles saves £1,848.
Worked example: 12,000 car miles
Drive more than 10,000 and the rate drops for the extra miles. On 12,000 miles you claim 10,000 x 55p (£5,500) plus 2,000 x 25p (£500), which is £6,000 in total. The split matters, so keep an accurate running total through the year rather than guessing at the end.
What counts as business mileage
Business mileage is travel you make wholly for work: driving to a client, a supplier, a temporary site, or between two work locations. It does not include your ordinary commute from home to a regular workplace, which HMRC treats as private travel. If you work from home and travel to clients, those client trips usually do count, since home is your base.
Keep a simple log: date, where you went, the reason, and the miles. A note on your phone or a spreadsheet is fine. You don't submit it with your return, but you need it if HMRC ever asks you to back up the claim.
Mileage rate or actual costs?
You can either use the simplified mileage rate or claim the actual running costs of the vehicle (fuel, insurance, repairs, plus capital allowances on the vehicle itself). You can't do both for the same vehicle, and once you've picked a method for a vehicle you have to stick with it for as long as you use it in the business.
The mileage rate usually wins for lower-value cars and higher mileages because it's simpler and the 55p rate is generous. Actual costs can beat it for an expensive vehicle with low business mileage, where the capital allowances are worth more than the flat rate. If in doubt, work out both for your first year and choose the larger deduction.