Business mileage calculator

Who it's for

Employees, company directors, sole traders and partners using their own vehicle

Scope

UK tax years from 2011 to 2012 up to 2026 to 2027. Own or privately leased vehicles only; company cars use the company car calculator.

Facts checked

13 October 2026

Who this calculator is for

It works out mileage for a vehicle you own or lease yourself, using HMRC's flat rates per business mile. The same pence-per-mile figures are used in two different ways:

• Employees and company directors: the figure is the approved amount, the most your employer can pay you for business miles without it being taxable. If your employer pays less (or nothing), you can claim tax relief on the difference, called Mileage Allowance Relief.
• Sole traders and partners in partnerships without a company partner: the figure is the simplified expenses amount you can deduct for vehicle costs on your Self Assessment return, instead of working out actual running costs. Limited companies can't use simplified expenses.

It's not for company cars. Those use advisory fuel rates, which cover fuel only: use the company car mileage calculator.

The rates it uses

For sole traders, the simplified expenses rates are the same for cars, goods vehicles and motorcycles, but there's no bicycle rate. The rates follow the tax year your journeys are in, which is why the calculator asks for it.

The 10,000-mile threshold

For cars and vans, the higher rate applies to the first 10,000 business miles in a tax year, and 25p applies after that. Two details matter:

• It counts all your cars and vans together. For employees, that's every car and van used for the same job; for a sole trader, every car and goods vehicle in the business. Enter the business miles already counted this tax year so the calculator knows where you are.
• A journey can straddle the limit. The calculator splits it, so part is paid at the higher rate and the rest at 25p.

Motorcycles and bicycles have one rate whatever the mileage.

What the result means, and what it doesn't

Approved amount (employees and directors)

The tax-free ceiling for mileage payments. Your employer's policy decides what you're actually paid. Anything paid above the approved amount is taxable and reported by your employer.

Unused approved amount

The gap when your employer pays less. You can claim tax relief on it for the current tax year and the 4 before. The relief you get is that amount times your rate of income tax, and it can't be more than the tax you paid that year.

Mileage expense (sole traders)

An allowable expense that reduces your taxable profit. How much tax it saves depends on your income, so the calculator doesn't show a tax saving.

Assumptions and limits

• Miles are rounded to the nearest 0.1 mile. Each rate band is added up exactly and rounded once to the penny, as in Mile Account's reports.
• Tax years from 2011 to 2012 onwards are offered, up to the latest tax year our rates were verified for (11 October 2026).
• Sole traders: it assumes your accounts run to the tax year. If your accounting date is different, HMRC's guidance (BIM75005) explains how to apply each tax year's rates.
• It doesn't cover passenger payments, National Insurance, or costs on top of mileage such as parking and tolls.