Running the business
HMRC simplified mileage allowance (cars and vans)
- where
- mileage allowance (£)
- rate for the first band, 55p from 6 April 2026 (p/mile)
- business miles in the tax year
- miles in the first band, 10,000
- rate above the first band, 25p (p/mile)
Explain this equation
Works out the HMRC simplified mileage claim for a car or van used for the business over a tax year.
B is the total business miles in the year and B1 the first band, 10,000 miles. r1 is the first-band rate (55p from 6 April 2026) and r2 the rate after that (25p). Dividing by 100 turns pence into pounds. min(B, B1) is the miles at the higher rate and max(B − B1, 0) the miles beyond the band.
The allowance is tiered: one rate for the first 10,000 miles and a lower one after that, so the miles are split between the two bands and each part is multiplied by its rate.
Sense check: 12,000 miles is 10,000 × 55p = £5,500 plus 2,000 × 25p = £500, £6,000 in total. 8,000 miles is £4,400 (it would have been £3,600 at the old 45p rate).
Watch out: if you claim mileage for a vehicle you cannot also claim its fuel, insurance, repairs or capital allowances.
Works out the simplified expenses mileage claim for a car or van used for the business, using HMRC flat rates.
Enter your values to see the result.
Good to know
From 6 April 2026 (tax year 2026 to 2027) the HMRC approved rates for cars and vans are 55p per mile for the first 10,000 business miles and 25p after that; they were 45p and 25p from 2011 to 2026. The increase also applies to self-employed simplified expenses. If you use the flat rate for a vehicle you cannot also claim its fuel, insurance, repairs or capital allowances, and once you choose it you must keep using it for that vehicle. Keep a mileage log.
Common mistake
Using the old 45p rate for 2026/27, or counting the daily trip from home to a permanent workplace. Trips to clients' sites and merchants are business; ordinary commuting is not.
Limits
Cars and vans only (motorcycles 24p, bicycles 20p). Count all business miles in the tax year for the 10,000 band, not per vehicle per job. Check GOV.UK for the current year's rates.
Sources
Results are calculations from the published methods and manufacturer figures shown, and depend on the data you enter. Always follow the manufacturers’ system and product data, BS 8212, BS EN 13914 and Building Regulations. Coverage rates vary by product, background and thickness. Check prices, VAT and CIS rules with your own records and HMRC.