2026/27 Tax YearHMRC Approved Rates
Business Mileage Calculator
Calculate your tax-deductible mileage allowance using HMRC approved rates for 2026/27.
Calculate Your Mileage Allowance
Enter your business miles to calculate your tax-free allowance
Miles with fellow employees as passengers (5p per mile)
Your Mileage Allowance
Total Allowance
£3,600.00
Estimated Tax Saving
£1,008.00
Mileage Allowance£3600.00
Income Tax Saving (20%)£720.00
NI Saving (8%)£288.00
HMRC Approved Mileage Rates 2026/27
| Vehicle | First 10,000 miles | Over 10,000 miles |
|---|---|---|
| Car | 45p | 25p |
| Motorcycle | 24p | 24p |
| Bicycle | 20p | 20p |
| Passenger (car only) | 5p per mile | |
Key Points
These rates cover the cost of fuel, insurance, road tax, MOT, and general wear and tear.
Keep accurate records of all business journeys including date, destination, purpose, and miles.
Commuting from home to your regular workplace is not claimable as business mileage.