Work out mileage allowance instantly with clear inputs, formula shown and shareable results.
Mileage paid up to the approved rate is a tax-free reimbursement of running costs. Anything paid above that rate is a benefit and taxed, while paying below it may allow the employee to claim relief on the difference.
Mileage
Exempt = distance × min(rate paid, approved rate); excess is taxable
Tax figures are estimates based on the rates, caps and thresholds you enter. Real rules differ by jurisdiction and change every year, and personal circumstances alter the outcome. This is not tax or financial advice — confirm with a qualified adviser.
Fuel, wear and tear, insurance and depreciation attributable to business use.
In several regimes yes — the shortfall can be claimed as an employment expense.