Mileage Allowance Calculator
How much can you claim for business mileage? Calculate your HMRC mileage allowance and compare it with actual vehicle costs to see which method saves you more.
HMRC approved mileage rates · 2026/27 tax year
Your vehicle details
Only journeys with a business purpose
Average passengers per journey (0 if solo)
For actual cost comparison
Optional — used to compare simplified vs actual cost method
Your annual claim
£2,250
HMRC simplified method
Tax saving
£450 – £900
basic to higher rate
Per mile
0.45p
417 miles/month
HMRC simplified mileage claim
Actual cost method comparison
You can claim actual vehicle costs (business proportion) instead of simplified rates — but not both.
Important: what counts as business mileage
Business mileage includes: Driving to client meetings, visiting suppliers, going to a temporary workplace, attending conferences.
NOT business mileage: Commuting between your home and a regular workplace. If you work from the same office every day, driving there is commuting — not a business expense.
Working from home exception: If your home IS your regular workplace (no separate office), travel to client sites IS business mileage.
Keep a mileage log: Record the date, destination, purpose, and miles for every business journey. HMRC can ask for this.
Save your results
Email yourself a copy of these calculations to refer back to later.
How this works
- HMRC approved mileage rates: cars 45p/mile (first 10,000), then 25p/mile. Motorcycles 24p/mile. Bicycles 20p/mile.
- Passenger supplement: 5p/mile per passenger on a business journey (cars only).
- You must choose ONE method per vehicle per year — simplified OR actual costs, not both.
- Actual cost proportion based on business miles ÷ total miles (assumed 10,000 personal miles for comparison).
- Tax saving is the reduction in your tax bill from claiming the expense. Depends on your marginal rate.
Mileage claims for freelancers
Two methods: simplified vs actual
HMRC offers two ways to claim vehicle expenses. The simplified method uses flat rates (45p/mile for cars) and requires no receipts for fuel — just a mileage log. The actual cost method requires keeping all vehicle receipts and calculating the business proportion.
Once you choose a method for a vehicle, you must stick with it for that vehicle for as long as you use it in your business. Most freelancers choose simplified rates because they're easier and often give a higher claim.
Electric and hybrid vehicles
The 45p/mile rate applies to all cars regardless of fuel type — petrol, diesel, electric, and hybrid all get the same rate. For electric vehicle owners, the simplified rate is often significantly more generous than actual electricity costs.
Always keep a contemporaneous mileage log with date, start/end location, business purpose, and miles. HMRC can request this during an investigation. Digital apps like MileIQ can automate tracking.