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Motoring & Money

Mileage Claim Calculator

Work out your HMRC business mileage claim — 45p per mile for the first 10,000 miles then 25p, motorcycles 24p, bikes 20p — plus the tax relief on any shortfall your employer leaves.

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Mileage claim calculator

HMRC approved mileage allowance (AMAP) 2025/26.

6 April to 5 April
p
For the relief on any shortfall
Approved mileage allowance
£0

    Approved rates set by HMRC. See GOV.UK mileage rates.

    How HMRC mileage claims work

    If you use your own car, van, motorcycle or bicycle for work journeys, HMRC lets you claim a tax-free amount for every business mile. These are the Approved Mileage Allowance Payments, or AMAP. They are designed to cover not just fuel but the full running cost of the vehicle — insurance, servicing, tyres, depreciation and wear. The rates have been frozen for several years and remain unchanged for 2025/26.

    💡 Quick answer

    Cars and vans: 45p a mile for the first 10,000 business miles in the tax year, then 25p after that. Motorcycles are 24p a mile and bicycles 20p a mile, with no drop at 10,000 miles.

    The 2025/26 AMAP rates

    VehicleFirst 10,000 milesOver 10,000 miles
    Car or van45p25p
    Motorcycle24p24p
    Bicycle20p20p

    There is also an extra 5p per mile you can claim for each passenger on the same business trip (cars and vans only).

    Mileage rate steps down from 45p to 25p after 10,000 miles 45p25p first 10,000 miover 10,000 mi

    Tax relief when your employer pays less

    Many employers reimburse mileage below the HMRC rate — say 25p or 30p per mile. You cannot force them to pay more, but you can claim back the tax on the gap through Mileage Allowance Relief (MAR). HMRC works out what you could have claimed at the approved rate, subtracts what your employer actually paid, and gives you tax relief on the difference at your marginal rate.

    For example, if you drive 8,000 business miles and your employer pays 25p, your AMAP entitlement is £3,600 (8,000 × 45p) but you received £2,000. The £1,600 shortfall earns relief: a basic-rate taxpayer gets £320 back (20% of £1,600), a higher-rate taxpayer £640. The calculator above shows this figure automatically once you enter what your employer pays.

    Keeping records and making the claim

    HMRC expects a contemporaneous log: the date, start and end points, reason for the journey and miles driven. Commuting from home to your normal workplace does not count — only genuine business travel does. If your total relief claim is £2,500 or less you can use the online P87 service; above that you must file a Self Assessment return. Claims can usually be backdated up to four tax years, so it is worth checking older journeys you never claimed for.

    Self-employed drivers

    If you are a sole trader you can use the same flat AMAP rates as "simplified expenses" instead of working out the actual proportion of your motoring costs. Once you choose the mileage method for a particular vehicle you must keep using it for that vehicle, so pick whichever gives the bigger deduction before you commit.

    MB
    Reviewed by Mustafa Bilgic
    Founder, Calcu · Consumer-finance tools

    "The bit people miss is the relief on the shortfall — if your employer pays under 45p you are usually owed something back. We build that into the result so it is not left on the table."

    Frequently asked questions

    What is the HMRC mileage rate for 2025/26?

    For cars and vans the approved mileage allowance payment (AMAP) is 45p per mile for the first 10,000 business miles in the tax year, then 25p per mile after that. Motorcycles are 24p and bicycles 20p, with no change at 10,000 miles.

    Can I claim 45p per mile if my employer pays less?

    Not the cash, but you can claim Mileage Allowance Relief (MAR) on the shortfall. If your employer pays 25p and HMRC allows 45p, you get tax relief on the 20p per mile difference at your marginal rate of income tax.

    Is mileage allowance taxable?

    No. Mileage paid at or below the HMRC approved rates is tax-free and does not appear on your payslip as income. Only amounts paid above the approved rate are treated as taxable pay.

    Does the 10,000 mile threshold reset each year?

    Yes. The 10,000-mile boundary applies per tax year, running from 6 April to 5 April. Once a new tax year starts your business miles count from zero again at the higher 45p rate.

    How do I claim mileage relief from HMRC?

    If your claim is under £2,500 you can use form P87 online or your Self Assessment return. Keep a log of dates, journeys and miles, and any mileage your employer already reimbursed, as HMRC may ask to see it.