Mileage calculator UK

How do you calculate mileage expenses?
For employees using their own vehicles for work.

miles


miles


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This calculator is fo Employees using their own vehicles for work. They are entitled to receive payments from their employer free of tax and National Insurance contributions (NICs).

Approved Mileage Rates from tax year 2011 to present date

Cars & Vans mileage rates

Period [From Year / To Year]First 10,000 milesAbove 10,000
[2011 / present]0.45 £ / mile0.25 £ / mile
[2002 / 2011]0.40 £ / mile0.25 £ / mile
Please note that you can add 5p per mile per additional passenger (fellow employees) on journeys which are also work journey for them.

Motorcycle mileage Rates

Period [From Year / To Year]First 10,000 milesAbove 10,000
[2011 / present]0.24 £ / mile0.24 £ / mile
[2002 / 2011]0.24 £ / mile0.24 £ / mile

Cycles mileage rates

Period [From Year / To Year]First 10,000 milesAbove 10,000
[2011 / present] 0.20 £ / mile0.20 £ / mile
[2002 / 2011] 0.20 £ / mile0.20 £ / mile

Source: Travel - mileage and fuel allowances (HM Revenue and Customs)

Good to know

The mileage allowance is an agreement between you and your employer. If the agreed mileage rate is lower than the approved mileage rate, you can claim tax relief on the difference between what you have been paid (e.g. 20p) and what you are allowed (e.g. 45p).

The tax man won't tell you..

Example: If you did 1000 miles and got paid 20p per mile = £200 but you would be allowed 1000 miles at 45p = £450 then you can claim tax allowance on the £250 difference.

The Mileage Allowance Relief will reduce the amount of income you pay tax on.

NB You can claim up to 6 years back!

More information on HM Revenue and Customs website.