Employee-owned vehicle · one tax year at a time
Mileage Tax Relief Calculator UK
Compare the approved mileage amount with what your employer actually paid. Estimate Income Tax relief on a qualifying shortfall, then check eligibility and the correct HMRC claim route.
Your business mileage
Use the average mileage payment per mile if the reimbursement rate varied. Exclude separate passenger payments.
Select the rate applicable to the income relieved. If the expense crosses tax bands or restores Personal Allowance, the actual relief can differ.
Your single-year estimate
Estimated Income Tax relief at 40%
£1,200.00
Tax relief on the allowable shortfall, rather than repayment of the whole mileage allowance. This is not a guaranteed HMRC refund.
- 10,000 miles at 55p
- £5,500.00
- 2,000 further miles at 25p
- £500.00
- Approved mileage amount
- £6,000.00
- Employer reimbursement
- £3,000.00
- Allowable shortfall
- £3,000.00
The mileage expense alone exceeds £2,500, so check HMRC's Self Assessment route. Other employment expenses and your filing circumstances affect the route.
For 2026/27, employee car/van mileage is 55p for the first 10,000 miles and 25p thereafter. Earlier supported years use 45p then 25p. Motorcycles use 24p and bicycles 20p. Calculate each historical tax year separately using its actual records; a four-year refund is not four times this estimate. An unpaid passenger allowance is not deductible Mileage Allowance Relief.
What the mileage figure means
The approved amount is a tax benchmark. It is not a rule requiring every employer to reimburse you at that rate. Eligible travel must use your own vehicle for work; company-car fuel reimbursement uses different advisory rates.
The potential deduction is the approved amount for eligible miles less reimbursement already received for those miles, with no deduction where there is no shortfall. Actual relief depends on the tax bands and liability affected.
Worked example: the tax year changes the answer
An employee drives 8,000 qualifying car miles and receives 25p per mile, or £2,000. In 2026/27, the approved amount is 8,000 × 55p = £4,400, leaving a £2,400 shortfall. If the full deduction reduces income taxed at 20%, relief is £480.
With the same miles and reimbursement in 2025/26, the approved amount was £3,600 at 45p per mile. The £1,600 shortfall gives £320 relief at 20%. This is why previous years must be calculated separately.
Keep evidence before making a claim
- Record the date, start/end locations, mileage and business purpose of each journey.
- Keep the employer reimbursement record and separate ordinary commuting and private trips.
- Check all employment expenses for the year when choosing P87 or Self Assessment.
- Use HMRC to confirm eligibility; this estimate does not file a claim or promise a repayment date.
Official rates and claim guidance
Frequently Asked Questions
Clear answers based on official HMRC rules and statutory guidance.
Mileage allowance versus tax relief
Approved Mileage Allowance Payments for a private vehicle and advisory fuel rates for a company car serve different purposes. Do not use one rate table for both.
Employee relief normally applies to an eligible shortfall after employer reimbursement. Ordinary commuting is not automatically business travel. Sole-trader simplified vehicle expenses have separate election and record rules.
Check the rules for your circumstances
Official guidance supports the rules described here; it does not approve or certify this calculator. Confirm dates, eligibility and unsupported cases before making a financial decision.
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