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Cars and travel
Mileage allowance
Estimate approved mileage payments and Income Tax relief on unreimbursed business miles in your own vehicle.
Open calculatorEngland / 2026/27
Business mileage tax relief calculator
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Estimated Income Tax relief on unreimbursed mileage
| Approved mileage amount | £6,000.00 |
|---|---|
| Employer reimbursement | £4,000.00 |
| Unreimbursed qualifying amount | £2,000.00 |
| Reimbursement above approved amount | £0.00 |
Own vehicle, qualifying business travel in one employment. Ordinary commuting is excluded. Relief is the tax saved on the shortfall, not a refund of that whole shortfall. Salary-only England estimate; excess-payment tax/NI and employee-specific eligibility are not calculated.
Check the inputs to calculate a result.
Calculation details
Approved mileage
For 2026/27, cars and vans use 55p for the first 10,000 business miles and 25p thereafter. Motorcycle mileage uses 24p and bicycle mileage 20p. These rates apply to qualifying business travel in an employee’s own vehicle.
Tax relief
Subtract employer payments from the approved amount. Income Tax relief is the tax saved on the remaining qualifying amount, not repayment of the whole amount. On £30,000 salary, 12,000 car miles and £4,000 reimbursement give a £2,000 shortfall and £400 estimated tax relief.
Limits
Excludes ordinary commuting, company cars, separate-employment aggregation issues and self-employed simplified expenses. Any taxable reimbursement excess is identified but its tax and NI are not calculated.
Sources
- Approved 2026/27 employee vehicle mileage rates
- Mileage relief on qualifying unreimbursed business use, not commuting
- Personal Allowance and adjusted-net-income taper
- England taxable-income band limits and rates
Checked 2026-10-25. Estimate only, not financial advice.