HMRC Mileage Allowance Rates 2026/27
If you use your own vehicle for business travel, you can claim tax relief using HMRC's Approved Mileage Allowance Payments (AMAPs). This guide explains the current rates effective from 6 April 2026 and how to claim.
Approved Mileage Rates 2026/27
From 6 April 2026, HMRC increased the approved mileage rate for cars and vans from 45p to 55p per mile for the first 10,000 miles.
| Vehicle Type | First 10,000 miles | Over 10,000 miles |
|---|---|---|
| Cars and Vans | 55p per mile | 25p per mile |
| Motorcycles | 24p per mile | 24p per mile |
| Bicycles | 20p per mile | 20p per mile |
| Electric Bikes (pedal-assisted) | 20p per mile | 20p per mile |
| Electric Bikes (other) | 24p per mile | 24p per mile |
Note: The rate for cars increased by 10p per mile from 6 April 2026 to reflect rising fuel and vehicle running costs.
Passenger Payments
If you carry a colleague as a passenger for business travel, you can claim an additional 5p per mile per passenger.
What Counts as Business Mileage?
You CAN claim for:
- Travel between different work locations
- Travel to client meetings
- Travel to temporary workplaces
- Travel to training courses
- Travel to conferences or events
You CANNOT claim for:
- Regular commuting (home to permanent workplace)
- Private travel
- Travel that is primarily for private purposes
How Employees Can Claim
Step 1: Keep Accurate Records For each business journey, record:
- Date of travel
- Start and end locations
- Purpose of the journey
- Miles travelled
Step 2: Calculate Your Claim Multiply your business miles by the appropriate rate:
- First 10,000 miles: 55p per mile
- Above 10,000 miles: 25p per mile
Step 3: Claim from Your Employer If your employer pays less than the HMRC rate (or nothing), you can claim Mileage Allowance Relief (MAR).
Step 4: Claim Tax Relief If your employer doesn't reimburse the full amount, claim the difference through:
- Self Assessment tax return, or
- Form P87 for claims under £2,500
Example Calculation
12,000 business miles in a year:
- First 10,000 miles x 55p = £5,500
- Remaining 2,000 miles x 25p = £500
- Total claimable: £6,000
If your employer pays 20p per mile (£2,400), you can claim tax relief on the difference of £3,600.
Tax relief for basic rate taxpayer: £3,600 x 20% = £720 tax refund
Tax relief for higher rate taxpayer: £3,600 x 40% = £1,440 tax refund
Self-Employed Mileage Claims
Self-employed individuals have two options:
Option 1: Simplified Expenses (AMAP Rates) Use the same 55p/25p rates as employees. This is simpler but you cannot claim any other vehicle costs.
Option 2: Actual Costs Claim a proportion of actual vehicle costs based on business use percentage:
- Fuel
- Insurance
- Road tax
- MOT and servicing
- Repairs
- Finance interest
- Depreciation
Company Car Advisory Fuel Rates
If you have a company car and pay for fuel for business travel, different rates apply (updated quarterly by HMRC):
| Engine Size | Petrol | Diesel | LPG |
|---|---|---|---|
| Up to 1400cc | 14p | 13p | 11p |
| 1401-2000cc | 17p | 15p | 13p |
| Over 2000cc | 26p | 20p | 21p |
Electric vehicles: 9p per mile
Tips for Maximising Your Claim
- Keep a mileage log - Record every journey with date, purpose, and distance
- Use a mileage tracking app - Automates record-keeping
- Don't forget passengers - Claim the extra 5p per passenger
- Review annually - Ensure you're claiming all eligible miles
Calculate Your Mileage Tax Relief
Use our Mileage Tax Relief Calculator to see exactly how much you could claim back.