14 October, 2021

2021 Mileage Reimbursement Calculator with HMRC rates

In this post, you can find our mileage reimbursement calculator which uses the mileage rate for 2021 provided by HMRC. The calculator can be used to get a general overview of your mileage reimbursement for the year and the amount you would receive back. If you need a mileage tracker or a vehicle log book, you can check out the Driversnote app here instead. 

Using the current HMRC rates for your calculation

You can check out this year’s standard mileage rates by HMRC here. The standard mileage rate is designed to make record-keeping easier, reduce administrative burdens, and lower costs for both businesses and HMRC. The rates are supposed to cover the cost of owning and operating your vehicle, including depreciation, insurance, and road tax.

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The mileage rates for 2021 are:

Vehicle          First 10,000 miles    
Cars & vans    45p    
Motorcycles    24p    
Bicycles         20p    

Vehicle          Over 10,000 miles    
Cars & vans    25p    
Motorcycles    24p    
Bicycles          20p    

The calculator below uses these rates to estimate your mileage reimbursement for 2021:

This calculator provides a brief overview - your situation may be different and you may need to consider more things before knowing your actual reimbursement amount. Read the full HMRC guide here to find out how to get mileage relief and keep a vehicle log book. 

Keep in mind that this calculation is not enough for you to have the right to receive the funds. To do so, you need to provide proof of your business trips which can easily be done if you keep a car log book.

When can I get the calculated mileage relief?

You can claim the mileage relief received on your calculation only when you use the vehicle for business purposes. To make sure you claim the right amount, you need to understand what HMRC classifies as business trips.

A trip is classified as a business trip when you need to drive to a different place than your usual workplace in order to conduct business. Furthermore, you are entitled to mileage allowance relief if you have a temporary workplace (where you are working for less than 24 months). If you have multiple temporary working places, you can get mileage relief for them as well. When it comes to your permanent workplace, HMRC defines it as somewhere where you spend at least 40% of your working hours and it is not possible to claim relief when commuting to the permanent workplace from home. 

Read here to find out what business travel is defined as according to HMRC.

What are the requirements to receive the calculated mileage allowance?

Your mileage allowance payment (or MAP) will be based on the mileage you have driven for business, multiplied by your employer’s mileage rate.

For example, if you have driven 400 miles this month and you are reimbursed by your employer at 40p per mile, then you can use the following formula to calculate your allowance:

[business miles x mileage rate = reimbursement], or 400 x 0.40 = £160

What records do I need to have to receive MAP? 

While the mileage calculator in this post is useful for you to get a general overview of the amount you may be entitled to receive as mileage relief, to receive MAPs, you must be able to prove to your employer that you have driven the said miles for business purposes. A mileage logbook is the most efficient way to do this.

According to HMRC’s rules for 2021, a car log book should include:

  • Date and purpose of your trip
  • The distance travelled 
  • The address for start and end of each of your business-related trips

The Driversnote mileage tracking app is perfect for this as it logs all of your trips automatically as you drive. The app comes with an automatic mileage tracker that will help you never forget logging a trip again. You can generate compliant reports which you just send over to your boss or accountant and you are good to go! 

Let us know if you have any questions about mileage logging or reimbursement in the UK and we will gladly help you out.