Mileage calculator
The mileage rate went up. Most people are still claiming 45p.
From 6 April 2026 the flat rate for cars and vans rose from 45p to 55p a mile for the first 10,000 business miles. That is an extra £1,000 of allowance on a 10,000 mile year, and it has barely been noticed.
Your travel
Journeys for work only. Commuting to a regular workplace does not count.
Used to work out the rate the claim comes off, which decides what it is worth.
Simplified expenses claim
You can claim
£3,300
which saves you £1,386 in tax and NI
- 6,000 miles at 55p
- £3,300
- Allowance
- £3,300
- Tax and NI saved
- £1,386
Averaged across every mile, that is £0.55 a mile of allowance.
2026/27 simplified expenses rates. You cannot use these for a vehicle you have already claimed capital allowances on, and once you choose the flat rate for a vehicle you must keep using it for as long as you have it.
How the claim works
The rates. Cars and goods vehicles are 55p a mile for the first 10,000 business miles, then 25p for everything after. Motorcycles are a flat 24p with no step. Because of the step, someone driving 15,000 miles averages 45p, which is a coincidence worth not being confused by.
It is a deduction, not a refund. Claiming £5,500 does not put £5,500 in your account. It removes £5,500 from taxable profit, so a basic rate payer saves 26% of it once Class 4 National Insurance is counted, and a higher rate payer saves 42%.
Simplified or actual, not both. The flat rate covers fuel, insurance, servicing and depreciation together. You cannot use it for a vehicle you have already claimed capital allowances on, and once you pick the flat rate for a vehicle you keep using it for as long as you own that vehicle.
Commuting does not count. Travel between home and a regular place of work is not a business journey. Visiting clients, suppliers and temporary workplaces is. Keep a record of dates, destinations and purpose; a spreadsheet is enough.