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 and how to claim.
Approved Mileage Rates 2026/27
| Vehicle Type | First 10,000 miles | Over 10,000 miles |
|---|---|---|
| Cars | 45p per mile | 25p per mile |
| Motorcycles | 24p per mile | 24p per mile |
| Bicycles | 20p per mile | 20p per mile |
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: 45p 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 × 45p = £4,500
- Remaining 2,000 miles × 25p = £500
- Total claimable: £5,000
If your employer pays 20p per mile (£2,400), you can claim tax relief on the difference of £2,600.
Tax relief for basic rate taxpayer: £2,600 × 20% = £520 tax refund
Tax relief for higher rate taxpayer: £2,600 × 40% = £1,040 tax refund
Self-Employed Mileage Claims
Self-employed individuals have two options:
Option 1: Simplified Expenses (AMAP Rates) Use the same 45p/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.
Related Topics
Waqas Sagar
ACA, FCCA, FMAAT - Chartered Accountant
Waqas is a Chartered Accountant regulated by ICAEW, ACCA and AAT with 18+ years of UK tax experience. He is the founder of Accotax, a London-based accountancy firm serving over 1,200 clients.
Accuracy Note
This information is for guidance only and is based on 2026/27 tax year rates. Tax rules are complex and your circumstances may differ. For personal advice, consult a qualified accountant or tax adviser.