Mileage Expense Calculator 2025/26

HMRC approved mileage rates 2025/26

If you use your own vehicle for business travel you can claim a mileage allowance from your employer or, if self-employed, as a business expense through your tax return. HMRC sets approved rates — the Approved Mileage Allowance Payments (AMAP) — which are the same for 2025/26.

Car and van rates

• First 10,000 miles — 45p per mile
• Above 10,000 miles — 25p per mile

The 10,000 mile threshold applies per tax year (6 April to 5 April) and resets every year.

Motorcycle rate

• All miles — 24p per mile (no threshold, flat rate)

Bicycle rate

• All miles — 20p per mile

Who can claim mileage expenses?

• Sole traders and partnerships — claim as a business expense on your Self Assessment tax return using the simplified expenses method
• Limited company directors — claim as an expense from your company. The company pays you and deducts it as a business expense
• Employees — if your employer pays less than the HMRC rate you can claim the difference as a tax-free allowance

What counts as business mileage?

Business mileage includes travel to temporary workplaces, visiting clients, travelling between different work locations and attending business meetings. It does not include your regular commute between home and your permanent workplace.

Keeping mileage records

HMRC expects you to keep a mileage log showing:

• Date of each journey
• Start and end location
• Purpose of the journey
• Miles travelled

Without records HMRC can disallow your mileage claim in an investigation.

Alternative — actual costs method

Instead of the approved mileage rates you can claim actual vehicle costs (fuel, insurance, servicing, depreciation) calculated on a business use proportion. This is more complex and generally only worth it for high mileage drivers with expensive vehicles. Once you choose a method you must stick with it for that vehicle.