Tax-free mileage allowance£6,000
| 10,000 miles at 55p | £5,500.00 |
|---|---|
| 2,000 miles over 10,000 at 25p | £500.00 |
| Total tax-free allowance | £6,000.00 |
| Corporation tax the company saves | £1,590.00 |
|---|---|
| Worked at 26.5% on £6,000.00 |
Assumes the company pays you the full allowance and deducts it from profit.
You do not need fuel receipts, but you do need a mileage log: date, journey, purpose and miles.
Free mileage allowance calculator by ContractorSums, 2026/27 rates.