Mileage Cost Calculator

For cars and vans (2026-27 tax year): 55p per mile for the first 10,000 business miles, then 25p per mile thereafter. Motorcycles: 24p per mile. Bicycles: 20p per mile. The car/van first-10,000-mile rate rose from 45p to 55p on 6 April 2026 — its first change since the 45p rate took effect in April 2011. The over-10,000 (25p), motorcycle and bicycle rates are unchanged.

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.

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.

Actual costs tend to win when your running costs are HIGH and your mileage is LOWER — for example an expensive vehicle with high insurance, depreciation, or servicing bills that you do not drive enough to "earn back" at the flat rate. The flat HMRC mileage rate (55p/25p) tends to win when you do HIGH mileage in a vehicle that is cheap to run, because the fixed pence-per-mile then exceeds your true per-mile cost. This calculator picks "Actual costs" only when your computed running cost exceeds the HMRC claim. Remember you must commit to one method per vehicle, so run both in year one and keep the better one.

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.