Millions of UK employees use their own car for work travel, but only a fraction claim the full mileage allowance HMRC permits. The Approved Mileage Allowance Payment (AMAP) rates of 45p and 25p per mile are tax-free entitlements — and where employers pay less, the shortfall can be claimed back from HMRC. This guide explains the rules and the claim mechanics in 2026.
Cars and vans: 45p per business mile for the first 10,000 miles in a tax year, 25p above. Motorcycles: 24p flat. Bicycles: 20p flat. Passengers carried on the same business journey: 5p extra per passenger per mile.
These rates have been frozen since 2011 despite fuel and running cost increases. The IAM and others have repeatedly called for an uplift to around 60p/25p; HMRC has so far declined.
Travel from home to a temporary workplace (typically a site you'll be at for less than 24 months and less than 40% of your time) qualifies. Travel from one workplace to another for the same employer qualifies.
Ordinary commuting from home to your usual permanent workplace doesn't qualify. Travel to a regular client visit you do every Tuesday for years can drift into ordinary commuting status — get clarity from HMRC if unsure.
If your employer pays 25p/mile and you've done 5,000 business miles, you've been paid £1,250. The HMRC entitlement is 5,000 × 45p = £2,250. Shortfall: £1,000. You can claim Mileage Allowance Relief on that £1,000 — saving £200 (basic rate) or £400 (higher rate).
Claim via P87 form for amounts under £2,500 (online via your Personal Tax Account) or via Self Assessment for higher amounts. You can claim back 4 prior tax years.
Anything paid above the HMRC rate is taxable as employment income. £0.60/mile when AMAP is £0.45 means £0.15 of every mile is taxable benefit, reportable on the P11D and triggering tax + NI.
Some employers run 'mileage logbooks' specifically to keep payments at exactly the AMAP rate, avoiding the P11D admin. If your employer pays a flat car allowance instead of per-mile, you can still claim AMAP relief on the full 45p/25p for actual business miles.
Date, start and end addresses, business reason, miles driven. A simple spreadsheet, app like Driversnote/MileIQ, or paper logbook all work.
HMRC can ask for evidence up to 6 years back. Without contemporaneous records, claims can be rejected or estimated downward. Build the habit of logging at the time, not retrospectively.
Yes — actual costs of parking, tolls and congestion charges are claimable in addition to the per-mile rate.
Different rules — you claim Advisory Fuel Rates (a few pence per mile) for fuel only, since the car itself is provided.
Per employment, not per employer. Multiple employments give multiple 10,000-mile bands.
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