Commute Cost Calculator

In the UK, ordinary commuting — travelling between your home and your regular workplace — is not tax-deductible. HMRC considers this a personal expense, not a business one. However, if you travel to a temporary workplace (somewhere you attend for less than 24 months), or travel between two different workplaces, those costs may qualify as business travel. Self-employed individuals can claim travel to client sites or temporary business locations as a business expense.

The HMRC Approved Mileage Allowance Payment (AMAP) rates for 2026 remain at 45p per mile for the first 10,000 business miles in a tax year, and 25p per mile thereafter. These rates apply to cars and vans used for business travel (not ordinary commuting). Motorcycles are 24p per mile, and bicycles are 20p per mile. Employers can pay these rates to employees tax-free; if they pay less, employees can claim Mileage Allowance Relief through their tax return.

No. The £6/week (£312/year) WFH flat-rate tax relief was abolished for most employees from 6 April 2026 under the Employment Rights Act 2025 and the Autumn Budget 2025 changes. Employees can no longer claim this relief directly from HMRC. Instead, if you incur additional costs working from home, your employer must reimburse you directly — either through tax-free payments at the HMRC homeworking allowance rate, or by covering specific household costs (bills, equipment) under a homeworking arrangement. Self-employed individuals can still deduct a proportion of home running costs as a business expense.

The full cost of driving to work goes well beyond fuel. You should account for: fuel (typically the largest variable cost), a portion of your annual car insurance premium (commuting adds risk and cost versus social-only cover), depreciation and wear-and-tear (typically 5–15p per mile depending on the car), parking fees at or near your workplace, road tolls or congestion charges, and servicing costs attributable to higher mileage. Our calculator includes fuel, parking, and an insurance portion — the HMRC 45p/mile rate is designed to cover all these costs together for business travel.

An annual season ticket typically costs around 40–50% less than paying the equivalent daily fare. It usually breaks even if you commute more than around 250 days per year (roughly 5 days a week for 50 weeks). Monthly season tickets offer similar savings at about 16× the daily cost. However, if you work from home even 1–2 days per week, you may save more by buying a flexi season ticket (10 single journeys valid for 12 months) or using a pay-as-you-go smartcard. Always compare your actual usage against the season ticket cost before committing.