HMRC approved mileage rates
When you use your own vehicle for work, your employer can pay you up to HMRC’s Approved Mileage Allowance Payments (AMAP) without any tax or National Insurance. For 2026/27:
| Vehicle | First 10,000 business miles | Each mile over 10,000 |
|---|---|---|
| Car or van | 0.55 | 0.25 |
| Motorcycle | 0.24 | 0.24 |
| Bicycle | 0.2 | 0.2 |
(Amounts in pounds per mile.) Your employer can also pay up to 5p a mile for each fellow employee you carry on the same business trip, tax-free.
If your employer pays less – claim Mileage Allowance Relief
If you get less than the approved amount, or nothing, you can claim tax relief on the difference. You get relief at your highest income tax rate, so a basic-rate taxpayer gets back 20% of the shortfall. Claim online through GOV.UK (“Claim tax relief for your job expenses”) or through Self Assessment. Passenger payments are not part of this relief.
If your employer pays more
Anything above the approved amount is taxable and goes through payroll or your P11D.
Worked example
In 2026/27 you drive 12,000 business miles in your own car and your employer pays 30p a mile.
- Approved amount: 10,000 × £0.55 + 2,000 × £0.25 = £6,000
- Paid: 12,000 × £0.30 = £3,600 → shortfall £2,400
- Relief for a basic-rate taxpayer: 20% × £2,400 = £480 back.
What counts as business miles
Trips you make for work – visiting clients, going to a temporary workplace, travelling between sites. Your normal commute between home and your permanent workplace does not count. Self-employed people can use the same rates as simplified expenses instead of actual vehicle costs.
Keep a mileage log
Whether you are employed or self-employed, record each business trip: the date, where you went and why, and the miles. HMRC can ask to see it, and a log makes a relief claim quick to fill in. A note in your phone or a simple spreadsheet is enough.
Electric cars use the same approved rates as petrol and diesel cars for mileage allowance payments.