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HMRC 6 min read

How to Calculate a Mileage Claim

A complete walkthrough of calculating your mileage claim — HMRC rates, the 10,000 mile threshold and reporting.

MileageCalendar Team Published 20 June 2026 Updated 26 June 2026

Step 1: Track every business journey

The first step is to record every business journey with the date, start point, destination, total miles and business purpose. You can do this manually, but automatic tracking or calendar import is far more accurate.

MileageCalendar records all of this automatically — whether you use GPS tracking, calendar import or manual entry.

Step 2: Apply the HMRC approved rate

The HMRC approved mileage rate is 55p per mile for the first 10,000 business miles in a tax year, and 25p per mile for each mile above 10,000. For motorcycles, the rate is 24p per mile.

Multiply your total business miles by the approved rate. For example, 8,000 business miles at 55p per mile = 8,000 × £0.55 = £4,400.

MileageCalendar applies the correct rate automatically and tracks the 10,000-mile threshold for you — no manual calculations needed.

Step 3: Handle the 10,000-mile threshold

The 10,000-mile threshold applies per tax year (6 April to 5 April). Once you exceed 10,000 business miles, the rate drops from 55p to 25p per mile for the rest of the tax year.

If you drive 12,000 business miles, the first 10,000 are at 55p (£5,500) and the remaining 2,000 are at 25p (£500), giving a total claim of £6,000.

The threshold resets on 6 April each year. MileageCalendar tracks this automatically.

Step 4: Export and report

Once you have your total, export a compliant report for your Self Assessment or accountant. The report should include every journey with its date, route, miles and purpose.

MileageCalendar exports PDF and CSV reports that meet HMRC requirements, and can also send claims directly to Xero, QuickBooks, FreeAgent or Sage.

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