What are the current HMRC mileage rates?

For cars and vans: 45p per mile for the first 10,000 miles, then 25p per mile thereafter. Motorcycles: 24p per mile. Bicycles: 20p per mile. These rates have not changed since 2012 despite rising costs.

Can I claim HMRC mileage AND actual costs?

No - you must choose one method. If you use the simplified HMRC mileage rate, you cannot also claim for fuel, insurance, or depreciation separately. Once you choose a method for a vehicle, you generally must stick with it.

What counts as business mileage?

Travel between your home and a temporary workplace (client sites), travel between job sites, trips to suppliers, and travel to training courses. Your regular commute to a permanent workplace does NOT count.

When is claiming actual costs better?

Actual costs are often better if you drive a fuel-efficient vehicle, do high mileage (over 10,000/year where HMRC drops to 25p), or have low running costs. The HMRC rate tends to favour those with higher running costs or lower mileage.

How do I track mileage for HMRC?

Keep a mileage log recording: date, start/end location, purpose of journey, and miles driven. HMRC can ask for evidence. Many tradespeople use apps like MileIQ or a simple spreadsheet. Keep records for at least 5 years.

TradeCalculator

Mileage Cost Calculator

Compare HMRC mileage rates vs actual vehicle running costs

Annual Business Miles

Vehicle Type

How We Calculate This

Enter your annual business mileage and vehicle details. The calculator applies HMRC Approved Mileage Allowance Payment rates (45p first 10,000 miles, 25p thereafter for cars/vans) and separately calculates your actual per-mile cost from fuel consumption, insurance, depreciation, servicing, and road tax. It then compares both methods to show which saves you more money.

Frequently Asked Questions

Related Calculators

Day Rate Calculator

Calculate net income from day rate after NI, income tax, pension and insurance.

Hourly Rate Calculator

Calculate hourly rate from target income, overheads, profit margin and billable hours.

Job Pricing Calculator

Calculate job price from materials, labour, waste, travel, markup and VAT.

Profit Margin vs Markup Calculator

Convert between profit margin and markup percentages with worked examples.

Self Assessment Tax Calculator

Calculate self assessment income tax, NI Class 2 and Class 4 from trading profit.

Last updated: March 2026

All calculations are estimates. Verify with your supplier.