Mileage Rate Calculator

Agreeing the appropriate mileage rate with your employee is an important part of their contract with you.

The government have a maximum allowance of £0.45 per mile for the first 10,000 miles and £0.25 per mile thereafter. The key thing about mileage payments is that they are tax free as they are to cover a genuine expense. The rate agreed should cover the cost but is not designed to be profitted from as this could be considered tax avoidance.

We have designed the below calculator to work out a 'fair' mileage rate for you and your employee.