Mileage Allowance Relief Calculator
If you drive your own car for work and your boss pays you less than 45p a mile, HMRC owes you a tax refund. Calculate your exact rebate below.
Your Journey Details
Do not include normal commuting to your permanent workplace.
Enter 0 if they don't pay you any mileage allowance.
Your Tax Refund
This is the estimated cash rebate HMRC owes you for the difference between the 45p rate and what your employer paid.
How Mileage Allowance Relief (MAR) Works in 2026
If you use your personal car for business trips (like driving to a client meeting, or visiting multiple care homes), it causes wear and tear on your vehicle and costs you fuel. To compensate for this, HMRC created the Approved Mileage Allowance Payment (AMAP).
The 45p / 25p Rule
HMRC says it costs 45p per mile to run a car for the first 10,000 miles of business travel in a tax year, and 25p per mile for every mile after that. This covers fuel, insurance, road tax, MOT, and depreciation.
If your employer reimburses you exactly 45p per mile, you break even. You owe no tax on that money, and you cannot claim any relief.
However, if your employer only pays you 20p per mile (or nothing at all), there is a 25p "shortfall" per mile. You are legally allowed to claim tax relief on that 25p shortfall. You do not get the full 25p in cash, but it reduces your taxable income, meaning HMRC will refund you the tax you paid on that amount.
Beware of Third-Party Claim Companies
Many companies advertise on Facebook offering to claim your mileage allowance for you. They typically take 30% to 50% of your refund as a fee. Do not use them! If your claim is under £2,500 for the tax year, you can fill out a simple P87 form on Gov.uk for completely free. It only takes about 10 minutes.
Frequently Asked Questions
What is Mileage Allowance Relief (MAR)?
If you use your own car or van for business journeys, HMRC sets an 'Approved Mileage Allowance Payment' (AMAP) rate of 45p for the first 10,000 miles, and 25p thereafter. If your employer pays you less than this rate, you can claim tax relief on the difference.
What counts as a 'business journey'?
A business journey is a trip you must make in the performance of your duties (like visiting a client) or a journey to a temporary workplace. Regular commuting between your home and your permanent workplace does not count.
How much is the HMRC mileage rate for 2026/27?
The HMRC AMAP rates for 2026/27 are 45p per mile for the first 10,000 business miles in a tax year, and 25p per mile for every business mile after that. If you ride a motorcycle, it's 24p per mile, and bicycles are 20p per mile.
Can I claim if my employer already pays me mileage?
Yes, but only if they pay you less than the HMRC approved rate. For example, if your employer pays you 20p per mile, you can claim tax relief on the remaining 25p per mile difference.
How do I claim my mileage tax rebate?
If your claim is for expenses under £2,500 for the tax year, you can claim using a P87 form online via your personal tax account on Gov.uk. If your claim is for £2,500 or more, you must file a Self Assessment tax return.