HMRC Mileage Allowance Calculator
Enter your total business miles for the year and instantly see how much you can deduct from your taxable profit. HMRC pays 45p per mile for the first 10,000 and 25p per mile after that.
Allowance Breakdown
First 10,000 miles at 45p
£4,500.00
Next 5,000 miles at 25p
£1,250.00
Total Mileage Allowance
£5,750.00
Deducted from your taxable profit
Estimated Tax Saved
£1,150.00
Based on 20% basic rate
If you pay higher rate tax (40%), your saving would be £2,300.00. The mileage allowance covers fuel, insurance, repairs, and wear and tear -- you cannot claim these separately if you use mileage rates.
How HMRC Mileage Allowance Works
Track your miles
Record every business mile you drive. Start and end odometer readings or GPS tracking both work.
Calculate your allowance
45p per mile for the first 10,000 and 25p per mile after. This covers fuel, insurance, and wear and tear.
Deduct from profit
Your mileage allowance is subtracted from gross income before tax is calculated, reducing your bill.
Quick Reference: Common Mileage Totals
| Annual Miles | Allowance | Tax Saved (20%) |
|---|---|---|
| 5,000 | £2,250.00 | £450.00 |
| 8,000 | £3,600.00 | £720.00 |
| 10,000 | £4,500.00 | £900.00 |
| 15,000 | £5,750.00 | £1,150.00 |
| 20,000 | £7,000.00 | £1,400.00 |
| 30,000 | £9,500.00 | £1,900.00 |
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Track your mileage automatically with Fyled
Log your odometer readings in seconds, and Fyled calculates your HMRC mileage allowance in real time. No spreadsheets, no missed deductions.