Skip to content

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.

Ask an accountant about your figure
Calculator

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.

Ordinary commuting between home and a permanent workplace does not count.

p

Ignored if you are self-employed. Many employers are still paying the old 45p rate in 2026/27.

Your result

Your figure is ready. Confirm it with an accountant, or skip straight to the numbers.

Free interactive tool

Free Sole trader and self-employment tool

Calculate your take-home pay as a sole trader

Our interactive tool is designed for a larger screen. Leave your details and a specialist will send your figure and the next sensible step, with no obligation.

Step 1 of 2, about you

Step 1 of 2, about you

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.

Free consultation

Numbers are one thing. Getting the timing right is another.

Every figure here is modelled on standard 2026/27 thresholds. Your actual position depends on prior-year usage, pension carry-forward, other income, and how your decisions interact. A free call gets that read properly.

  • 24-hour response, usually same dayYou hear back from a person, not an autoresponder
  • Fixed fees, agreed before any workIn writing, before anything starts
  • One named accountant, not a team inboxThe same person every time you call

Book your free consultation

Optional: a bit more detail (helps us prepare)

To answer your enquiry, your details may be shared with a firm from our specialist partner network who will contact you. If that firm is unable to help, your details may be passed to another firm in the network for the same purpose. By submitting this enquiry you confirm you understand this. See our Privacy Policy.

We respond within 24 hours and store your details securely.

FAQ

Frequently asked questions