UK Fuel Duty & MileageCalculator

UK Fuel Duty & Mileage Calculator

Your driving

See what keeping the 5p fuel duty cut saves you in 2027, and, if you drive for work, what the higher tax-free mileage rates are worth.

Your car
It runs on
miles
All your driving, for work or not. The average car does about 7,000.
mpg
Your car’s display shows it. 45 is typical for a family car.
Driving for work
miles
Trips you make for work, not your commute. Leave at 0 if you don’t.

Budget figures current for 2026/27 and 2027/28, last checked against GOV.UK.

Results update as you type

Your results

Fuel duty saved
£30
January to June 2027, on about 505 litres
Mileage: less tax a year
£0
Enter your work miles to see it
Fuel a year
1,010 litres
10,000 miles at 45 mpg
Fuel duty you pay a year
£642
52.95p a litre, plus the VAT on it
Saved on a 55-litre tank
£3.30
6p a litre, until 1 July 2027
Tax-free mileage, a year
£0
From April 2027, on your work miles

The 5p cut was due to start coming back in January 2027. Keeping it until 1 July 2027 means you pay 6p a litre less than planned for six months, VAT included.

Tax-free mileage rates

For a car or van of your own used for work. Employers can pay up to these rates tax-free; if they pay less, you can claim tax relief on the difference.

Business miles in a tax yearWithout the Budget2026/27From 6 April 2027
The first 10,00045p55p55p
Above 10,00025p25p35p

55p for the first 10,000 miles has applied since 6 April 2026 as a temporary rate; the Budget makes it permanent, and raises the rate above 10,000 miles from April 2027. Without it, both would have gone back to 45p and 25p. Motorbikes (24p) and bicycles (20p) are unchanged.

Using this calculator

Choose what your car runs on, then enter the miles you drive in a year and its miles per gallon. If you drive your own car or van for work, enter those miles too, and the calculator shows the tax the higher mileage rates save you from April 2027.

  • The fuel duty saving is against what was planned before the Budget: the 5p cut coming back from January 2027. Pump prices also move with oil prices, which nobody can forecast.
  • Work miles are trips for your job: visiting clients or customers, or travelling between sites. Your commute from home to your usual workplace doesn’t count.
  • If you’re an employee and your employer pays less than the tax-free rate, you can claim tax relief on the difference from HMRC. If they pay more, the extra is taxed as pay.
  • If you’re self-employed and use the mileage rates instead of your car’s actual costs, they come off your profit, saving Income Tax and National Insurance.

For who can claim and how, read using your own car for work: mileage rates and tax relief.

How the figures are worked out

Fuel: miles divided by miles per gallon gives gallons, and a gallon is 4.546 litres. Half a year’s litres, for January to June 2027, times 6p (the 5p cut and the 20% VAT on it) is the saving against the plan to bring the 5p back from January. The fuel duty you pay is 52.95p a litre plus 20% VAT on it, for petrol and diesel alike. The delayed inflation rise isn’t counted, since the Budget doesn’t say how big it would have been. Mileage: the tax-free amount for your work miles at 55p and 35p, against the 45p and 25p that would have come back without the Budget. For an employee, any part your employer doesn’t pay can be claimed as tax relief, and anything paid above it is taxed, so the saving is the Income Tax on the difference, at your rates. National Insurance on an employee’s mileage isn’t included. For the self-employed, the mileage comes off your profit, so the saving is the Income Tax and Class 4 National Insurance on the difference. Tax uses this year’s rates and bands, which stay frozen.

Where the figures come from

Every figure checked against the Budget document and GOV.UK on 28 October 2026.

Announced but not yet in force: the 35p rate above 10,000 miles from 6 April 2027 and the permanent 55p rate are due to be made law in the Finance Bill 2026-27. The fuel duty cut is set by the government and lasts until 1 July 2027.

Frequently asked questions

What is happening to fuel duty?

The temporary 5p a litre cut, in place since March 2022, was due to start coming back from January 2027. At the 28 October 2026 Budget it was kept until 1 July 2027, and the yearly inflation rise was put back to July as well. Fuel duty stays at 52.95p a litre for petrol and diesel until then.

How much will the fuel duty freeze save me?

6p a litre for the first half of 2027: the 5p of duty plus the 20% VAT charged on it. That’s £3.30 on a 55-litre tank. A car doing 10,000 miles a year at 45 mpg uses about 505 litres from January to June, so it saves about £30.

Does this cut the price at the pump?

It stops the price going up by 6p a litre in January, rather than bringing it down. Pump prices still move with oil prices and with what each garage charges, which the Budget doesn’t control.

What are the new mileage rates?

For a car or van of your own used for work, the tax-free rate is 55p a mile for the first 10,000 business miles in a tax year, and from 6 April 2027 35p a mile above that. 55p has applied since 6 April 2026 as a temporary rate, and the Budget makes it permanent; the rate above 10,000 miles was 25p. Without the Budget they would have been 45p and 25p.

How much tax will the new mileage rates save me?

10p for every business mile, at your rate of tax. The Budget’s examples: a basic rate taxpayer driving 6,000 business miles saves £120 a year (6,000 × 10p × 20%), and one driving 15,000 miles saves £300. Self-employed people using the mileage rates save National Insurance too.

My employer pays less than 55p a mile. What can I do?

Claim Mileage Allowance Relief from HMRC on the difference. Work out the miles at the approved rates, take away what your employer paid, and you get tax relief at your rate on what’s left: 20% for a basic rate taxpayer. You can claim online, or on your Self Assessment return if you file one. You need a record of the journeys.

What if my employer pays more than the rate?

The extra is taxed as pay. With a higher tax-free rate from April 2027 above 10,000 miles, less of it is taxed.

Do the mileage rates apply to electric cars?

Yes, the same rates apply to electric and hybrid cars you own. Electric cars don’t pay fuel duty, so the fuel duty saving doesn’t apply.

Does my commute count as business miles?

No. Travelling from home to your usual workplace is your commute. Business miles are journeys you make for work: visiting customers or clients, going to a temporary workplace, or travelling between sites.

What doesn’t this calculator cover?

Company cars and fuel benefit, motorbikes and bicycles (their rates aren’t changing), passenger payments, red diesel, the National Insurance on an employee’s mileage, and the new pay-per-mile charge for electric cars, which starts later.