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UK Mileage Calculator

Distance & Fuel Cost
HMRC Reimbursement
Cost Comparison

How to Use This Calculator

Distance & Fuel Cost: Enter your journey distance in miles, select your vehicle type, input your fuel efficiency (MPG), and current fuel price. The calculator will determine your fuel consumption and total journey cost.

HMRC Reimbursement: Input your business mileage to calculate your entitled allowance based on official HMRC rates. If your employer provides partial reimbursement, enter that amount to see additional relief you can claim through your tax return.

Cost Comparison: Compare your actual vehicle running costs against HMRC allowance rates to determine whether claiming mileage is financially beneficial for your situation.

HMRC Mileage Rates Explained

The Her Majesty’s Revenue and Customs (HMRC) sets approved mileage allowance payment rates that employers can reimburse employees for business travel in personal vehicles. These rates cover all vehicle running costs including fuel, insurance, road tax, servicing, and depreciation.

Vehicle Type First 10,000 Miles Above 10,000 Miles
Cars and Vans 45p per mile 25p per mile
Motorcycles 24p per mile 24p per mile
Bicycles 20p per mile 20p per mile

The two-tier rate for cars and vans recognises that per-mile costs decrease with higher mileage due to fixed costs being spread over more miles.

Claiming Mileage Allowance Relief

Employees using personal vehicles for business journeys can claim tax relief if employer reimbursement is below HMRC rates. This relief is claimed through your Self Assessment tax return or by contacting HMRC directly.

Qualifying Business Journeys

Business mileage includes travel from your normal workplace to other locations for work purposes, visits to temporary workplaces (assignments lasting under 24 months), and travel between multiple work sites. Commuting between home and your permanent workplace does not qualify.

Record Keeping Requirements

Maintain detailed records including journey date, destination addresses, business purpose, and miles travelled. HMRC requires these records for verification and they must be retained for at least five years after the tax year they relate to.

Records must be contemporaneous. Estimates or reconstructed mileage logs may be rejected by HMRC during enquiries.

Fuel Consumption Calculations

UK fuel efficiency is measured in miles per gallon (MPG), whilst fuel is sold by the litre. The calculator converts between these units using the standard conversion: 1 gallon = 4.54609 litres.

Calculating Fuel Cost Per Mile

Fuel cost per mile = (Fuel price per litre × 4.54609) ÷ MPG

For example, at £1.45/litre with 45 MPG efficiency: (1.45 × 4.54609) ÷ 45 = £0.147 per mile

Factors Affecting Fuel Efficiency

Actual MPG varies based on driving conditions. Motorway driving typically achieves 10-15% better efficiency than urban driving. Cold weather, excessive idling, rapid acceleration, and vehicle load all reduce fuel economy.

Vehicle Running Costs Beyond Fuel

HMRC mileage rates account for total vehicle ownership costs. When comparing actual expenses to allowance rates, consider these components:

Fixed Costs (Annual)

  • Vehicle Excise Duty (road tax)
  • Insurance premiums
  • MOT testing
  • Depreciation

Variable Costs (Per Mile)

  • Fuel consumption
  • Tyre wear and replacement
  • Servicing and maintenance
  • Repairs and parts

Occasional Costs

  • Breakdown cover
  • Parking charges
  • Toll road fees
  • Congestion charges

The AA estimates average car running costs range from 35p to 85p per mile depending on vehicle type, age, and annual mileage. Higher mileage vehicles benefit from fixed costs spreading across more miles.

Electric Vehicle Considerations

Electric vehicles (EVs) use the same HMRC mileage rates as petrol and diesel cars. However, actual running costs differ significantly, with electricity typically costing 3-4p per mile for home charging compared to 12-15p per mile for petrol vehicles.

Advisory Electricity Rate (AER) for company car users is set quarterly by HMRC, currently at 9p per mile for fully electric vehicles. This rate applies when employers reimburse electricity costs for business use of company EVs.

Employer Reimbursement Policies

Employers can reimburse at, below, or above HMRC rates. Reimbursements up to HMRC rates are tax-free and do not require reporting. Payments exceeding approved rates are taxable income subject to Income Tax and National Insurance.

If employer reimbursement is below HMRC rates, employees can claim Mileage Allowance Relief on the difference. This provides tax relief at your marginal rate (20%, 40%, or 45%).

Example: You drive 12,000 business miles. HMRC allowance is £5,000. Employer pays £3,000. You can claim tax relief on £2,000 difference, saving £400 (20% rate) or £800 (40% rate).

Self-Employed Mileage Claims

Self-employed individuals can use simplified mileage expenses or claim actual costs. The simplified method uses HMRC rates without needing detailed receipts for every expense. Actual cost method requires comprehensive record-keeping but may provide greater deductions for high-cost vehicles.

Once you choose a method for a vehicle, you must continue using it for that vehicle’s lifetime in your business. Switching between methods is not permitted.

Common Scenarios

Multiple Workplaces in One Day
When visiting several locations for work, claim mileage for travel between sites and from your normal workplace to the first site and final site back to workplace. If returning home between appointments, claim only the business portion that exceeds your normal commute.
Carrying Work Equipment or Colleagues
Standard HMRC rates apply regardless of passengers or equipment carried. There are no additional allowances for carrying tools, samples, or colleagues. Employers may choose to pay higher rates, but any excess above HMRC rates becomes taxable.
Part-Time and Zero-Hours Workers
Mileage claims apply equally to part-time workers. However, determining your permanent workplace can be complex with variable schedules. If you work at multiple sites without spending 40% or more of time at any single location, all sites may be considered temporary, making travel between them claimable.
Company Car Users
Drivers of company cars cannot claim the standard mileage rates. Instead, employers may reimburse fuel costs for business journeys using Advisory Fuel Rates (AFRs) published quarterly by HMRC. These rates vary by engine size and fuel type.
Exceeding 10,000 Mile Threshold
The 10,000 mile threshold applies per tax year (6 April to 5 April). Track cumulative mileage throughout the year. Once you exceed 10,000 miles in cars or vans, all subsequent miles that tax year are claimed at 25p. The allowance resets to 45p at the start of the next tax year.

Frequently Asked Questions

Can I claim mileage for hybrid working arrangements?
Yes, if you work from home some days under a hybrid arrangement, your home is not considered your permanent workplace. Travel from home to your office on designated office days may qualify as business travel if home is your primary work location for tax purposes.
What if I use different vehicles for business travel?
Claim the appropriate rate for whichever vehicle you use for each journey. The 10,000 mile threshold applies across all cars and vans you drive, not per vehicle. Maintain separate records for each vehicle showing dates, distances, and purposes.
How do I claim if I have no employer reimbursement?
Claim Mileage Allowance Relief through Self Assessment or form P87 for employed individuals. Relief is given at your tax rate, so basic rate (20%) taxpayers receive 20% of the claimable amount, whilst higher rate (40%) taxpayers receive 40%.
Are parking and toll charges included in mileage rates?
No, HMRC mileage rates cover only vehicle operating costs. Parking fees, toll road charges, congestion charges, and ferry costs incurred on business journeys can be claimed separately as expenses with receipts.
What evidence does HMRC require for mileage claims?
Maintain a contemporaneous mileage log recording date, destination, business purpose, and distance for each journey. Odometer readings, diary entries, or approved mileage tracking apps provide supporting evidence. Estimates or retrospective calculations are insufficient.
Can I round mileage to the nearest mile?
Yes, rounding to the nearest whole mile is acceptable. However, consistently rounding up may raise questions during HMRC enquiries. Use mapping tools or odometer readings for accuracy, particularly for regular journeys where you should record the actual distance consistently.

Mileage Tracking Methods

Accurate record-keeping is essential for successful mileage claims. Various methods suit different working patterns:

Method Advantages Considerations
Paper Logbook No technology required, inexpensive Easy to forget entries, manual calculations
Spreadsheet Automatic calculations, easy to share Requires discipline to update regularly
Mobile Apps GPS tracking, automatic detection Battery usage, subscription costs
Telematics Device Automatic recording, very accurate Initial cost, installation required

Tax Year Planning

Strategic planning can optimise mileage claims, particularly when approaching the 10,000 mile threshold. Consider these approaches:

If nearing 10,000 miles late in the tax year, deferring non-urgent business travel to the next tax year means those miles attract the higher 45p rate. Conversely, if you will definitely exceed 10,000 miles, completing more journeys before year-end makes little difference to total allowance.

Review your employer’s reimbursement policy annually. If they pay below HMRC rates, ensure you claim Mileage Allowance Relief through Self Assessment. This relief is not automatic and must be actively claimed.

References

  • HM Revenue & Customs (2024). “Travel – mileage and fuel rates and allowances.” GOV.UK. Available at: https://www.gov.uk/government/publications/rates-and-allowances-travel-mileage-and-fuel-allowances
  • HM Revenue & Customs (2024). “Claim tax relief for your job expenses.” GOV.UK. Available at: https://www.gov.uk/tax-relief-for-employees/vehicles-you-use-for-work
  • The Automobile Association (2024). “Running costs.” AA Motoring. Available at: https://www.theaa.com/driving-advice/driving-costs
  • HM Revenue & Customs (2024). “Advisory fuel rates.” GOV.UK. Available at: https://www.gov.uk/guidance/advisory-fuel-rates

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