UK Mileage Allowance Calculator
Work out your HMRC Approved Mileage Allowance Payments (AMAPs) for 2026/27 at the updated 55p/25p rate for cars. See how much you can claim in tax relief if your employer pays below the approved rate, or check whether any excess reimbursement is a taxable benefit.
Optional — used to show your business %
Extra 5p per mile per passenger
Enter 0 if your employer doesn't reimburse mileage
| Vehicle | First 10,000 miles | Over 10,000 miles |
|---|---|---|
| Car or Van | 55p | 25p |
| Motorcycle | 24p | 24p |
| Bicycle | 20p | 20p |
Plus 5p per mile for each fellow employee carried as a passenger (cars only).
HMRC Approved Amount
£4,400.00Employer Pays
£0.000p per mile
Tax Relief Claimable
£4,400.00Claim via Self Assessment or P87
You can claim £4,400.00 in tax relief
Your employer reimburses less than the HMRC approved rate. You can claim the difference as Mileage Allowance Relief (MAR).
- Form P87 — if your total employment expenses are under £2,500 and you don't file Self Assessment
- Self Assessment — include in your tax return under employment expenses
Keep a mileage log with dates, destinations, and business purpose for each journey.
How HMRC Mileage Allowance Works
If you use your own car, van, motorcycle, or bicycle for business journeys, your employer can reimburse you tax-free up to the HMRC approved rates. These are called Approved Mileage Allowance Payments (AMAPs).
The approved rate for cars and vans is 55p per mile for the first 10,000 business miles in a tax year, dropping to 25p per mile after that. Motorcycles get a flat 24p per mile and bicycles 20p per mile.
The 55p/25p Split Explained
The 55p rate covers not just fuel but also insurance, road tax, servicing, and depreciation of your vehicle. After 10,000 miles, HMRC assumes running costs per mile decrease, so the rate drops to 25p. The threshold resets at the start of each tax year (6 April).
For 2026-27 this first-10,000-mile rate increased from 45p to 55p — the first change since 2011-12. HMRC announced the rise on 21 May 2026 and made it retrospective to 6 April 2026. The increase applies equally to employees using their own car for work and to self-employed individuals using the simplified mileage method.
Claiming Mileage Allowance Relief
If your employer pays you less than the approved rate (or nothing at all), you can claim Mileage Allowance Relief (MAR) on the shortfall. For example, if your employer pays 30p per mile and you drive 8,000 business miles, the 25p difference on each mile adds up to £2,000 of tax relief available.
Use Form P87 if your total employment expenses are under £2,500 and you don't need to file Self Assessment. Otherwise, include the claim on your Self Assessment tax return.
What Counts as Business Mileage?
- Travelling between different workplaces
- Visiting clients, customers, or suppliers
- Travelling to a temporary workplace (under 24 months)
- Journeys from a home office to the employer's premises (if home is your main workplace)
Your regular commute from home to your normal workplace does not count as business mileage.
AMAP Rates by Tax Year
| Vehicle | 2026-27 | 2025-26 |
|---|---|---|
| Car or van (first 10,000 miles) | 55p | 45p |
| Car or van (over 10,000 miles) | 25p | 25p |
| Motorcycle (flat rate) | 24p | 24p |
| Bicycle (flat rate) | 20p | 20p |
| Passenger add-on (per colleague) | 5p | 5p |
The car first-10,000-mile rate rose from 45p to 55p for 2026-27 — first change since 2011-12. All other rates are unchanged.
Worked Examples
Example 1 — Claiming MAR
8,000 business miles; employer pays 30p/mile
Example 2 — Taxable Excess
12,000 business miles (spans 10k band); 60p/mile employer; 1 passenger
Rate provenance: Announced 21 May 2026, retrospective to 6 April 2026; legislated via the Taxation (Energy and Vehicles) Bill; HMRC's operative rates table already lists 55p for 2026 to 2027. Self-employed simplified mileage rates rise in step (same policy paper). Claims for 2025-26 and earlier years continue to use the 45p/25p rates applicable to those years.
Frequently asked questions
What are the HMRC mileage allowance rates for 2026-27?
HMRC Approved Mileage Allowance Payments (AMAPs) for 2026-27 are: Cars and vans — 55p per mile for the first 10,000 business miles, then 25p per mile. Motorcycles — 24p per mile (flat rate). Bicycles — 20p per mile (flat rate). There is also an extra 5p per mile for each fellow employee carried as a passenger on business journeys.
Did the HMRC mileage rate change for 2026-27?
Yes. The car and van AMAP rate rose from 45p to 55p per mile for the first 10,000 business miles, effective from 6 April 2026 — the first increase since 2011-12. HMRC announced the rise on 21 May 2026 and made it retrospective to that date, legislated via the Taxation (Energy and Vehicles) Bill. The rates for motorcycles (24p), bicycles (20p), and passengers (5p) are unchanged, as is the over-10,000-mile rate of 25p.
What rate applies to my 2025-26 claim?
The 2025-26 rate for cars and vans is 45p per mile for the first 10,000 business miles and 25p per mile above that. The 55p rate only applies from 6 April 2026. Claims for earlier tax years use that year's rate — a 2025-26 MAR claim filed via P87 or Self Assessment uses 45p/25p, not 55p.
Can I claim mileage allowance relief?
Yes, if your employer reimburses you at less than the HMRC approved rate (or doesn't reimburse you at all), you can claim Mileage Allowance Relief (MAR) on the difference. If your total employment expenses are under £2,500 you can claim using Form P87. Otherwise, you'll need to file a Self Assessment tax return.
What happens if my employer pays more than the HMRC rate?
If your employer reimburses you at more than the HMRC approved rate, the excess is treated as earnings and is subject to income tax and National Insurance. The excess should be reported on your P11D or processed through payroll as a taxable benefit.
Do I need to keep records of my mileage?
Yes. You should keep a mileage log recording the date, destination, purpose of the journey, and miles driven for each business trip. You must be able to separate business miles from personal commuting miles. HMRC may ask to see your records if you claim Mileage Allowance Relief.
Can I claim mileage for commuting to work?
No. Your normal commute from home to your regular workplace is not a business journey and does not qualify for mileage allowance. Business mileage only covers journeys between workplaces, to temporary workplaces, or to client/customer sites. If you work from home as your main workplace, journeys to the office may count as business travel.
Deeper mileage guides
- HMRC Mileage Rates 2025-26 & 2026-27 — full AMAP table (car 45p/25p for 2025-26, now 55p/25p for 2026-27), motorcycle 24p, bicycle 20p, passenger 5p add-on, 10,000-mile reset, 24-month rule for temporary workplaces.
- MAP vs Self-Claim: Employer Reimbursement or P87 Claim — 3 reimbursement paths compared, the £2,500 P87 cap, 4-year backclaim window, why employer NI shifts the calculus.