Free calculator · 2026/27 rates
Mileage Reimbursement Calculator
The approved mileage rate for cars and vans rose from 45p to 55p per mile for the first 10,000 business miles on 6 April 2026, the first increase since 2011. Miles above 10,000 stay at 25p, motorcycles at 24p and bicycles at 20p. Enter your business miles to see what you can claim in 2026/27, whether you are self-employed or an employee, and what happens if your employer still reimburses at the old 45p rate.
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The approved mileage rate for cars and vans rose from 45p to 55p per mile for the first 10,000 business miles on 6 April 2026, the first increase since 2011. Miles above 10,000 stay at 25p, motorcycles at 24p and bicycles at 20p. Enter your business miles to see what you can claim in 2026/27, whether you are self-employed or an employee, and what happens if your employer still reimburses at the old 45p rate.
Ordinary commuting between home and a permanent workplace does not count.
Ignored if you are self-employed. Many employers are still paying the old 45p rate in 2026/27.
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How the 2026/27 mileage rates work
From 6 April 2026 the approved mileage allowance payment (AMAP) rate for cars and vans is 55p per mile for the first 10,000 business miles in the tax year, then 25p per mile above that. This is the first change to the headline rate since 2011, when it was set at 45p. Motorcycles (24p) and bicycles (20p) are unchanged, as is the 5p per mile passenger rate an employer can add when you carry a colleague on a business journey.
If you are self-employed, the approved amount is a deduction from your trading profits. If you are employed and your employer reimburses less than the approved amount, the difference qualifies for Mileage Allowance Relief: you claim it via Self Assessment or form P87 and get tax back at your marginal rate. If your employer pays more than the approved amount, the excess is taxed as earnings with Class 1 NIC on top. The rate change matters here: an employer still paying 45p in 2026/27 is now underpaying by 10p a mile, which creates a relief claim that did not exist last year.
Worked example 1: an employed care worker drives 8,000 business miles in 2026/27 and her employer reimburses 45p per mile (£3,600). The approved amount is 8,000 × 55p = £4,400, so the shortfall is £800. As a basic-rate taxpayer she claims Mileage Allowance Relief and gets £160 back. Under the old 45p rate she would have had no claim at all.
Worked example 2: a self-employed consultant drives 14,000 business miles in his own car. The approved amount is 10,000 × 55p (£5,500) plus 4,000 × 25p (£1,000), £6,500 in total. As a higher-rate taxpayer that deduction saves £2,600 in income tax, £400 more than the £5,500 the same mileage was worth in 2025/26, before any Class 4 NIC saving.
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