Fuel costs calculator

How the fuel cost calculator works

Enter your annual mileage, the price of fuel and your vehicle’s miles-per-gallon (MPG), and the calculator estimates your yearly fuel cost. It is a simple way to compare vehicles, budget for business travel, or see the saving from a more efficient car.

If you use your own car for business, you may be able to claim mileage at HMRC’s approved rates — ask us how to record and claim this correctly.

Business mileage in your own car

Where you use your own vehicle for work, an approved mileage rate can be paid tax-free up to a threshold of annual business miles, and at a lower rate above it. The rate is intended to cover fuel, wear, insurance and depreciation together, which is why it is higher than fuel alone.

If your employer pays less than the approved rate — or nothing — you can claim tax relief on the shortfall. A great many employees are entitled to this and never claim it, and it can be backdated for several years.

What counts as business travel

Travel to a client, a supplier or a temporary workplace counts. Ordinary commuting to a permanent workplace does not, and neither does the private part of a journey that mixes both. Keeping a simple log of date, journey and purpose is what makes a claim survive a question years later.