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Business Mileage Calculator

Total Business Miles:
At what rate do you currently pay tax? (please select):

What you need to know:

  • The current car mileage allowances are 45p per mile for the first 10,000 business miles and 25p per mile from that 10,000 mile mark. The mileage rates were different before the 2010-2011 tax years.
  • If your employer pays you a car mileage allowance which is taxed, you do not need to make an adjustment to the business mileage incurred.
  • If you are paid a car mileage allowance which is not taxed, you must deduct the amount paid from any mileage claim to ensure an accurate figure is calculated.
  • You can backdate a business mileage tax rebate for your tax years.

The Business Mileage Calculator gives you an estimated amount of business mileage tax rebate that you could be owed. To get a specific figure, you need to check which of your work journeys are eligible for tax relief by considering things like if you’re going to a ‘temporary workplace’ and which mileage rate applies.  The sensible figure worked out by the Business Mileage Calculator gives you a taste of how much tax you can save with a Business Mileage tax relief claim.

What if my employer already pays me mileage?

Some people are lucky enough to be paid mileage by their employer. If they don’t pay the full mileage allowance amount, you can claim the difference from HMRC. For example, you are entitled to 45p per mile for the first 10,000 miles. So if you get 25per per mile from your employer, then you can claim the additional 20p per mile from HMRC.

Does my daily commute count as business mileage?

Unfortunately, your daily commute from your home to your permanent workplace is not considered business mileage. That is just the journey you expect to make to get to and from work.

What kind of journeys count as business mileage?

Any journey to a ‘temporary workplace’ will count as business mileage. By HMRC’s definition, this means somewhere you work for up to 24 months, or spend no more than 40% of your working day. For example, working at two different sites or travel to a client’s office.

Please note: The costs of public transport for work related journeys, including bus and train, are also eligible for tax relief.

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