Mileage Allowance Calculator
Calculate HMRC-approved mileage allowance for business travel.
What is the Mileage Allowance Calculator?
A mileage allowance calculator works out the tax-free amount HMRC allows you to be paid for business travel in your own car, van or motorcycle, using the Approved Mileage Allowance Payment (AMAP) structure. It works by applying a higher rate to the first 10,000 business miles in a tax year and a lower rate to anything beyond that (cars and vans), or a single flat rate for motorcycles, since AMAP recognises that the fixed costs of running a vehicle are spread more thinly over higher mileage. To calculate it manually: for cars/vans, multiply the first 10,000 miles by the higher rate and any remainder by the lower rate and add them together; for motorcycles, multiply total miles by the flat rate — always confirm the current rates on gov.uk, since this is the maximum your employer can pay tax-free without it counting as a taxable benefit.
How it works
HMRC publishes standard Approved Mileage Allowance Payment (AMAP) rates that employers can pay employees, tax-free, for using their own vehicle on business journeys. For cars and vans, a higher rate applies to the first 10,000 business miles in a tax year, then a lower rate applies to any miles beyond that — motorcycles use a single flat rate regardless of mileage.
UK context
If your employer pays less than the approved rate, you can usually claim Mileage Allowance Relief on the shortfall through Self Assessment or a claim form. If your employer pays more than the approved rate, the excess is generally taxable as additional income — the AMAP structure exists specifically to set the tax-free threshold in both directions.
Tips
- Keep a mileage log (dates, purpose, start/end points, miles) for business journeys — this is what you'll need if you ever claim relief or if HMRC asks for evidence.
- The 10,000-mile threshold resets each tax year (6 April to 5 April), not on a rolling 12-month basis — check your cumulative business mileage against the correct tax year.
- AMAP rates are set by HMRC and reviewed periodically — always check the current rate on gov.uk before relying on a figure for an actual claim.
Frequently asked questions
What if my employer pays less than the approved mileage rate?
You can usually claim Mileage Allowance Relief on the difference through Self Assessment or a specific claim form, provided you keep adequate records of your business mileage.
Does the 45p rate apply to all my business mileage?
No — for cars and vans, the higher rate applies only to the first 10,000 business miles in a tax year; a lower flat rate applies to any miles above that in the same tax year.
Do motorcycles use the same rate structure as cars?
No — motorcycles use a single flat rate for all business mileage, without the two-tier 10,000-mile threshold that applies to cars and vans.
A quick note
Uses HMRC's standard AMAP rate structure. Rates are reviewed periodically — always confirm the current rate on gov.uk before making or relying on an actual mileage claim.