Mileage Allowance Calculator (AMAP Rates)

If you use your own car, van, motorcycle or bicycle for business journeys, HMRC sets an approved amount you can be paid tax-free per mile. This calculator works out that approved amount for your mileage, and shows any shortfall you may be able to claim tax relief on if you are paid less.

How to use the mileage allowance calculator

Choose your vehicle type, enter your business miles for the tax year, and enter the rate per mile your employer actually pays you, if any. The calculator shows the HMRC approved amount for your mileage, compares it with what you have been paid, and estimates the tax relief you could claim on any shortfall.

How the calculation works

For cars and vans, the calculator applies 55p per mile to your first 10,000 business miles in the tax year, then 25p per mile to anything above that. Motorcycles and bicycles use flat rates of 24p and 20p per mile with no threshold. The calculator compares this approved amount with what you have actually been paid, and estimates tax relief on any shortfall at the basic rate of 20%.

Worked example

Say you drive 12,000 business miles in a car over the tax year, and your employer pays you 45p per mile. The approved amount is 10,000 miles at 55p, plus 2,000 miles at 25p, which comes to £5,500 plus £500, or £6,000 in total. Your employer has paid you 12,000 × £0.45 = £5,400, leaving a shortfall of £600 you could claim Mileage Allowance Relief on, worth roughly £120 back at the basic rate of tax.

How to actually claim the relief

If you are employed, you can usually claim Mileage Allowance Relief through Self Assessment if you already complete a tax return, or by using a P87 form if you do not. You will need records of your business mileage, ideally a simple log with dates, destinations and miles travelled, along with what your employer paid you. If you are self-employed, mileage is usually claimed differently, through simplified expenses on your Self Assessment return rather than a separate relief claim.

Common mistakes people make

A common mistake is including ordinary commuting miles to a permanent workplace, which do not qualify as business mileage. Another mistake is forgetting to keep a mileage log, which makes it harder to support a claim if HMRC asks for evidence. It is also easy to apply the wrong rate after crossing the 10,000 mile threshold for cars and vans, since the rate drops partway through the year for many regular business drivers.

Related calculators

If you are self-employed, our self-employed tax calculator can help you estimate your overall tax bill. Comparing running costs is easier with our fuel cost calculator and MPG calculator. For a wider look at self-employed expenses and tax, see our self-employed tax guide.