HMRC Business Mileage & Fuel Cost Calculator 2026/27
May 2026 Update: With petrol averaging 158p/litre and diesel at 187p/litre, many drivers are currently “out of pocket” using the standard 45p rate. Use this tool to calculate your tax-free reimbursement and true fuel profit/loss.
Expert Insight: The 45p Rate in a 2026 Economy
As a professional automatic driving instructor based in the UK, I monitor vehicle running costs daily. For the 2026/27 tax year, the HMRC has maintained the Approved Mileage Allowance Payment (AMAP) at 45p per mile for the first 10,000 miles. While this rate is intended to cover fuel, insurance, and depreciation, the reality of May 2026 fuel prices—driven by Middle Eastern supply volatility—means the “fuel portion” of that 45p is being squeezed.
Using my background in technical systems and fleet management, I developed this calculator to help fellow self-employed professionals and commuters determine their true Wear and Tear Margin. If you are driving a vehicle with less than 40 MPG at current petrol prices, your effective reimbursement for maintenance is significantly lower than it was five years ago.
2026/27 HMRC Mileage Rates Table
| Vehicle Type | First 10,000 Miles | Over 10,000 Miles |
|---|---|---|
| Cars and Vans | 45p | 25p |
| Motorcycles | 24p | 24p |
| Bicycles | 20p | 20p |
Why the “Passenger Rate” Matters
Many professionals overlook the Passenger Allowance. You can claim an additional 5p per mile for each fellow employee you carry on a business journey. In 2026, with the rise of corporate ride-sharing to meet carbon targets, this can add up to hundreds of pounds of additional tax-free income per year.