Pricing
HMRC mileage allowance (cars and vans, 2026–27)
- where
- miles at the higher rate
- business miles to claim
- business miles already claimed this tax year
- mileage allowance (£)
Explain this equation
Works out the HMRC simplified mileage allowance for a claim, allowing for miles already claimed this tax year.
The higher rate applies to the first 10,000 business miles in a tax year. max(0, 10000 − M₀) is how many higher-rate miles are left; the claim uses up to that many, and any remaining miles get the lower rate. The rates are in pounds per mile.
A two-band tariff.
Sense check: 500 miles early in the year are all at the higher rate, about £275.
Watch out: the rates are built into this calculator for the stated tax year. Check them against HMRC each year.
Works out the tax-free mileage allowance (or simplified expenses deduction) for business journeys in a car or van.
Enter your values to see the result.
Good to know
From 6 April 2026 the rate is 55p per mile for the first 10,000 business miles in the tax year and 25p after that. Sole traders can use the same flat rates under simplified expenses instead of actual vehicle costs, but must stick with that method for that vehicle.
Common mistake
Restarting the 10,000-mile band for each job. It counts across the whole tax year (6 April to 5 April).
Limits
Cars and vans only. Motorcycles and bicycles have different rates.
Sources
Results are calculations from the published methods and figures shown, and depend on the data you enter. Follow BS EN ISO 6946, BS 5250, PAS 2035, Building Regulations Part L and manufacturers’ data. Whole-house retrofit needs a qualified retrofit assessor and coordinator.