What does the Business Mileage Calculator do?

Compare HMRC mileage allowance vs actual fuel costs. See if you profit or lose from the 45p/25p rates. All calculations are performed in your browser using official UK rates and thresholds.

Is this calculator based on 2025/26 rates?

Yes. This calculator uses the current 2025/26 UK tax year rates for income tax, National Insurance and other deductions, effective from 6 April 2025.

Does this include pension contributions?

This calculator can factor in workplace pension contributions. Under auto-enrolment, the minimum is 8% total (5% employee + 3% employer) of qualifying earnings.

Business Mileage Calculator

Compare HMRC mileage allowance vs actual fuel costs. See if you profit or lose from the 45p/25p rates.

Last updated: April 2026 · Source: HMRC - Business Travel Mileage

Annual Business Miles

Fuel Price (p/litre)

Your MPG

HMRC Mileage Allowance

£3,600.00

Actual Fuel Cost

£1,227.44

You profit from HMRC rates

+£2,372.56/year vs fuel only

+£1,572.56 vs total running costs

HMRC per Mile

45.0p

Your Cost per Mile

25.3p

Disclaimer

This calculator is provided for informational purposes only and should not be considered as financial or tax advice. All calculations are performed locally in your browser — no personal data is collected or sent to our servers. Rates and thresholds are sourced from HMRC and GOV.UK and are updated for the current tax year. Always verify results with HMRC or consult a qualified professional before making financial decisions.

How It Works

When you use your personal vehicle for business journeys, HMRC sets Approved Mileage Allowance Payments (AMAP) rates that your employer can reimburse tax-free. For cars and vans, the rate is 45p per mile for the first 10,000 business miles in a tax year, dropping to 25p per mile for each additional mile beyond that threshold. These rates are designed to cover fuel, insurance, wear and tear, and depreciation.

If your employer pays less than the AMAP rate, you can claim Mileage Allowance Relief (MAR) on the shortfall through your Self Assessment return or by contacting HMRC to adjust your tax code. The relief equals the difference between what HMRC allows and what your employer actually paid, multiplied by the number of qualifying business miles driven.

Commuting between home and your regular workplace does not count as business mileage. Qualifying journeys include travel to temporary workplaces, client sites, and locations that are not part of your ordinary commute. You must keep a contemporaneous mileage log recording dates, destinations, purposes, and distances for each claim.

Annual business mileage claim for an employee

Total business miles driven in the tax year: 14,000
First 10,000 miles at 45p: 10,000 x £0.45 = £4,500
Remaining 4,000 miles at 25p: 4,000 x £0.25 = £1,000
Total AMAP allowance: £4,500 + £1,000 = £5,500
Employer reimbursed £3,200, so Mileage Allowance Relief claimable: £5,500 - £3,200 = £2,300

Source: HMRC - Business Travel Mileage

Frequently Asked Questions

What does the Business Mileage Calculator do?: Compare HMRC mileage allowance vs actual fuel costs. See if you profit or lose from the 45p/25p rates. All calculations are performed in your browser using official UK rates and thresholds.
Is this calculator based on 2025/26 rates?: Yes. This calculator uses the current 2025/26 UK tax year rates for income tax, National Insurance and other deductions, effective from 6 April 2025.
Does this include pension contributions?: This calculator can factor in workplace pension contributions. Under auto-enrolment, the minimum is 8% total (5% employee + 3% employer) of qualifying earnings.