What is the mileage rate for a car in 2026/27?

For 2026/27 the approved rate is 55p a mile for the first 10,000 business miles and 25p a mile after that. The 10,000 mile band resets at the start of each tax year on 6 April. Vans use the same rates as cars.

Can I claim fuel and mileage at the same time?

No. The approved rate already includes fuel, so claiming both would count the same cost twice. The only extras you can add are parking, tolls and congestion charges paid on business journeys.

Does the 10,000 mile limit apply per vehicle or per person?

Per person, per tax year, across all cars and vans you use for the business. If you drive 6,000 miles in one car and 6,000 in another, the last 2,000 miles are paid at 25p. Motorcycle and bicycle miles are counted separately at their own flat rates.

Can I claim for a passenger?

Yes, 5p a mile for each passenger who is travelling for the same business, on top of the car rate. It applies to cars and vans only. The passenger must be a colleague or employee, not a customer or family member on a private trip.

Can I switch from mileage to actual costs later?

Not for the same vehicle. Sole traders who use simplified expenses must keep using the flat rate until they replace the vehicle. If you buy a new vehicle you can choose again, so compare both methods before you decide, especially for expensive or high-mileage cars.

HMRC Mileage Allowance Calculator

Work out what you can claim for business miles at HMRC approved rates and keep a log you can export to CSV.

HMRC’s approved mileage rate for 2026/27 is 55p a mile for the first 10,000 business miles in a car or van and 25p a mile after that, 24p a mile for motorcycles, 20p for bicycles and 5p a mile for each passenger you carry. Multiply your business miles by the rate to get the amount you can claim.

Quick calculator

You can claim

£0.00

0 miles by car or van, 2026/27

First 10,000 miles: 0 miles at 55p£0.00

Total allowance£0.00

Mileage log

Trips are saved in this browser only. The car band is applied in date order within each tax year, so the running total is what you can claim so far.

HMRC approved mileage rates

Cars and vans get the higher rate for the first 10,000 business miles in a tax year and the lower rate after that. Motorcycles and bicycles have one rate for every mile. The passenger rate is added for each colleague you carry on the same business journey.

Rate per business mile
Vehicle	2025/26	2026/27
Car or van, first 10,000 miles	45p	55p
Car or van, over 10,000 miles	25p	25p
Motorcycle	24p	24p
Bicycle	20p	20p
Each business passenger	5p	5p

Source: GOV.UK: Business travel mileage rules. Last updated 29 October 2026.

Source: GOV.UK: Business travel mileage rules; GOV.UK: Simplified expenses for vehicles. Last updated 29 October 2026.

How to use the mileage calculator

What are the HMRC mileage rates for 2026/27?

The approved rates cover fuel, insurance, servicing and depreciation in one figure, so you claim the rate and nothing else for the vehicle. The car rate drops after 10,000 miles in a tax year because the fixed costs are treated as covered by then.

Approved mileage rates, 2026/27
Vehicle	First 10,000 miles	After that
Car or van	55p	25p
Motorcycle	24p	24p
Bicycle	20p	20p
Each passenger (cars only)	5p	5p

How do I work out a mileage claim?

Take the miles in each band and multiply by the rate. For 12,000 business miles by car in 2026/27: 10,000 × 55p = £5,500.00, plus 2,000 × 25p = £500.00, a total claim of £6,000.00. The same miles in 2025/26, when the car rate was 45p, came to £5,000.00. The calculator picks the year from the journey date, so a log that spans 5 April is split correctly.

Which journeys count as business miles?

Travel between your base and a customer, site or supplier.
Travel between two places of work for the same business.
Not ordinary commuting between home and a permanent workplace, and not private trips tacked on to a work journey.

What records do I need to keep?

HMRC expects a log with the date, start and end points, the purpose of the trip and the miles. Keep it for five years after the 31 January filing deadline for that tax year. The log in this tool stays in your browser; export it to CSV at the end of each month and attach it to your bookkeeping.

Can I claim mileage as a sole trader or as an employee?

Sole traders claim the flat rate as a simplified expense instead of actual vehicle costs, and once you choose that method for a vehicle you keep it until you change the vehicle. Employees who use their own car claim Mileage Allowance Relief on the gap between what the employer paid and the approved rate, and the claim reduces the profit you enter in the self assessment calculator. Limited company directors can be paid the rate tax free by the company.

Frequently asked questions

What is the mileage rate for a car in 2026/27?: For 2026/27 the approved rate is 55p a mile for the first 10,000 business miles and 25p a mile after that. The 10,000 mile band resets at the start of each tax year on 6 April. Vans use the same rates as cars.
Can I claim fuel and mileage at the same time?: No. The approved rate already includes fuel, so claiming both would count the same cost twice. The only extras you can add are parking, tolls and congestion charges paid on business journeys.
Does the 10,000 mile limit apply per vehicle or per person?: Per person, per tax year, across all cars and vans you use for the business. If you drive 6,000 miles in one car and 6,000 in another, the last 2,000 miles are paid at 25p. Motorcycle and bicycle miles are counted separately at their own flat rates.
Can I claim for a passenger?: Yes, 5p a mile for each passenger who is travelling for the same business, on top of the car rate. It applies to cars and vans only. The passenger must be a colleague or employee, not a customer or family member on a private trip.
Can I switch from mileage to actual costs later?: Not for the same vehicle. Sole traders who use simplified expenses must keep using the flat rate until they replace the vehicle. If you buy a new vehicle you can choose again, so compare both methods before you decide, especially for expensive or high-mileage cars.

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Cite this page: “HMRC Mileage Allowance Calculator”, SoleKit, https://solekit.co.uk/mileage-calculator