HMRC Mileage Rates Calculator UK 2025

The approved HMRC mileage rates for 2024/25 are: cars and vans at 45p per mile for the first 10,000 business miles and 25p per mile thereafter, motorcycles at 24p per mile for all business miles, and bicycles at 20p per mile for all business miles. An additional 5p per mile applies for each passenger carried on business journeys in a car.

Business miles include travel between workplaces, travel to temporary workplaces (if you go there for less than 24 months), travel to client sites, and travel to training courses. Your normal daily commute from home to your permanent workplace does NOT count as business mileage.

No. Your regular commute between home and your permanent workplace is not an allowable business journey. However, if you work from home as your main workplace and travel to a client site or office, that journey may qualify. Temporary workplace journeys (less than 24 months) are also claimable.

If you are self-employed, claim mileage on your self-assessment tax return in the business expenses section. If you are employed and your employer does not reimburse your mileage (or reimburses less than the approved rate), you can claim tax relief through form P87 or your self-assessment return.

If you are self-employed, you can choose between the flat-rate mileage allowance or actual costs (fuel, insurance, repairs, depreciation) for the business proportion of your vehicle use. Once you choose a method for a vehicle, you must stick with it for that vehicle. Employees can only use the approved mileage rates.

You should keep a mileage log recording: the date of each journey, the start and end locations, the purpose of the journey, and the distance in miles. HMRC can ask for these records up to 6 years after the tax year. A simple spreadsheet or mileage tracking app is sufficient.

No. HMRC applies the same approved mileage rates to all cars regardless of fuel type. Electric, hybrid, petrol, and diesel cars all receive 45p per mile for the first 10,000 miles and 25p per mile thereafter. This has been a point of debate as electric cars cost less per mile to run.

Yes. If you use your bicycle for business journeys, you can claim 20p per mile. This applies to all business cycling miles with no upper limit. The same qualifying rules apply as for car journeys — commuting does not count, but travel to temporary workplaces and client sites does.

If you carry a passenger who is also travelling on business for the same employer, you can claim an additional 5p per mile for each passenger. For example, if you drive 100 business miles with two colleagues, you can claim the normal mileage rate plus 5p times 100 times 2 equalling £10 extra.

Tax relief on mileage depends on your marginal tax rate. If you are a basic rate taxpayer (20%), you get back 20% of your total mileage claim. For example, a £4,500 claim at 20% gives £900 back. Higher rate taxpayers (40%) would get £1,800 back on the same claim.