TaxWiz Logo
Updated for 2026/27 Tax Year

HMRC Mileage
Deduction Tool

Driving for Deliveroo, Uber, or a client? Calculate your 45p/mile allowance and lower your tax bill legally.

Standard Mileage Rates

mi

Business miles only. Commuting doesn't count.

What is MAR?

The Mileage Allowance Relief (MAR) is a simplify way to claim for your fuel, insurance, and wear & tear without keeping receipts for every petrol fill-up.

Tax Deductible Amount£2,250

This amount is subtracted from your Trading Profit, reducing the total tax you owe.

Effective Rate45.0p / mile
HMRC ComplianceAMAP Verified

What you can claim:

Delivery travel to customers
Travel between jobs
Fuel & Oil costs (included in rate)
Vehicle depreciation (included in rate)
Repairs & Servicing (included in rate)
Annual Road Tax (included in rate)
Wait! Are you VAT registered?

How mileage allowance works

If you use your own vehicle for business purposes (excluding your commute to a regular workplace), HMRC allows you to claim a "Simplified Expense" per mile. This rate is designed to cover fuel, insurance, servicing, and wear & tear all in one go.

In Plain English

What is "Simplified Expenses"?

Instead of keeping a box full of petrol receipts and calculating your car's depreciation, you just track your miles. You multiply your business miles by the HMRC rate (e.g. 45p) and subtract that total from your profit.

HMRC Approved Mileage Rates (2026/27)

Cars & Vans

45p per mile for the first 10,000 miles. 25p per mile thereafter.

Motorcycles

24p per mile for all business mileage.

Bicycles

20p per mile for all business mileage (Yes, you can claim for cycling!)

Mileage & Travel FAQ

No. HMRC considers travel between your home and a 'permanent place of work' as commuting, which is not tax-deductible. Business mileage only counts for travel to temporary sites, clients, or delivery routes.
If you are using the simplified mileage rates (45p/mile), you do not need to keep petrol receipts. However, you MUST keep a detailed log of your business journeys (date, destination, purpose, and miles covered).
Actually, yes! If you are a passenger in a car or van being used for business travel, you can claim 5p per mile from your employer, or if you are self-employed, some travel rules apply to 'essential' staff.