Mileage Allowance
Mileage allowance calculator — 45p a mile and the tax relief you can claim.
Tax back from HMRC
£240
Claim Mileage Allowance Relief on £1,200 through your personal tax account or Self Assessment.
- Tax-free approved amount
- £2,700
- Paid by employer
- £1,500
- Relief claimable
- £1,200
What your employer pays against the tax-free amount
Rates and rules from Travel — mileage and fuel rates and allowances (HM Revenue & Customs) and Claim tax relief for your job expenses (HM Revenue & Customs).
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Expert help
Turn your estimate into the right tax decision.
A calculator can model the numbers. Our accountants can check the assumptions, explain the options and handle the return or payroll work for you.
Ask an accountantQuestions
Frequently asked
questions.
Is 45p a mile taxable?
No. Payments up to the approved rate are tax- and NI-free. Anything your employer pays above 45p (or 25p after 10,000 miles) is taxable.
How do I claim Mileage Allowance Relief?
Through your HMRC personal tax account or form P87 if your claim is under £2,500, or on your Self Assessment return above that. Keep a log of dates, journeys and business miles.
Does driving to the office count?
No. Ordinary commuting between home and a permanent workplace is not business travel. Journeys to a temporary workplace or between client sites are.
Can I claim for passengers?
Your employer can pay up to 5p a mile per passenger tax-free, but you cannot claim relief if they don't.
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