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What did that journey really cost?

Fuel plus wear and tear, worked out properly — so you can split a trip fairly between everyone in the car, or claim it back with a figure you can stand behind.

Tax year 2026/27 · UK

Fuel

Example figures — type over them£11.93
litres
£/litre

Fill the tank before you set off and again when you get back. The second fill is exactly what the trip used — no MPG, no mileage, no guessing.

8.9 litres at £1.34 a litre = £11.93 of fuel.

Wear and tear

£22.47
miles
p/mile

Each one adds up the costs you entered under Build it up from your costs, spread over your yearly mileage. Change a figure there and these move with it.

mi
Optional — only matters past 10,000.

Where the wear and tear figure comes from

Nobody publishes a wear-and-tear rate on its own, so it has to be worked backwards. HMRC allows 55p a mile tax-free for the first 10,000 business miles. Their separate fuel-only rate for a mid-size petrol car is 17p. The gap — about 38p a mile — is what HMRC reckons everything other than fuel costs you.

That is the ceiling. Build the same figure up from real costs at 8,000 miles a year and you land in the same place, which is a fair sign the number is honest.

Depreciation is the big one and the one people forget. On a mid-range car it is comfortably half the wear cost — more than servicing, tyres and repairs put together.

Charging more than 55p a mile is allowed, but the excess counts as taxable income rather than an expense. The panel flags it when you cross the line. Past 10,000 business miles in a tax year the allowance drops to 25p.

Rates checked September 2026 against HMRC mileage allowance payments and HMRC advisory fuel rates. Both change — the fuel rates every quarter. Nothing here is tax advice.