Fuel Cost Calculator UK

HMRC Mileage Allowance Calculator

See what HMRC's approved mileage rates are worth for your business miles, and how much tax relief you could claim if your employer pays you less.

Your business mileage

Exclude ordinary commuting to a permanent workplace.

Enter 0 if you receive nothing.

Estimated tax relief you could claim

£320.00

HMRC approved amount

£3,600.00

Paid by employer

£2,000.00

Shortfall

£1,600.00

HMRC approved mileage rates

  • Cars and vans: 45p a mile for the first 10,000 business miles, then 25p a mile
  • Motorcycles: 24p a mile
  • Bicycles: 20p a mile

These Approved Mileage Allowance Payment (AMAP) rates have been unchanged since 2011. Always check the current rates on GOV.UK before you claim.

Example

You drive 8,000 business miles in your own car and your employer pays 25p a mile (£2,000). The approved amount is 8,000 × 45p = £3,600, leaving a £1,600 shortfall. As a basic-rate taxpayer you could claim relief worth about £320.

Handwritten business mileage log on the passenger seat of a car on a UK motorway

Does 45p a mile cover your fuel?

The rate is meant to cover fuel and wear and tear. Most cars spend well under 45p a mile on fuel alone — check yours with the fuel cost per mile calculator.

Things to know

Keep a record of dates, destinations and miles. Self-employed people can use the same rates as simplified expenses instead of actual costs. This calculator gives an estimate, not tax advice — your own position may differ.

Ways to reduce your motoring costs

Fuel is only part of the cost of running a car. Shopping around each year for car insurance and breakdown cover, keeping on top of servicing and checking tyres regularly can all make a difference. We plan to add independent pointers here over time.

Frequently asked questions

What is the HMRC mileage rate?+

For cars and vans it is 45p a mile for the first 10,000 business miles in a tax year and 25p a mile after that. Motorcycles are 24p and bicycles 20p a mile.

Can I claim tax relief if my employer pays less than 45p?+

Yes. If you're an employee you can usually claim tax relief on the difference between the approved amount and what you were paid, using form P87 or your Self Assessment return.

Does commuting count as business mileage?+

No. Ordinary travel between home and a permanent workplace isn't business mileage. Journeys to a temporary workplace or between client sites usually are.

How much will I actually get back?+

Relief reduces the tax you pay, so you get your tax rate multiplied by the shortfall — for example 20% of a £1,600 shortfall is £320.

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