The Approved Mileage Allowance Payments (AMAP) system lets employees and the self-employed claim a fixed pence-per-mile rate for business journeys in their own vehicle. For 2026/27 the rates are 45p per mile for the first 10,000 business miles in a tax year and 25p per mile thereafter for cars and vans, 24p per mile for motorcycles, and 20p per mile for bicycles. These rates have been frozen since April 2011 — over 15 years without change. A passenger allowance of 5p per mile is also available for taking another employee on a qualifying business journey. This calculator works out your annual mileage claim and the corresponding tax saving, and identifies any taxable employer reimbursement above HMRC rates.
How AMAP works
If you use your own vehicle for business journeys, you can claim a tax-free allowance from your employer (or deduct from your trading profit if self-employed) at the AMAP rates:
| Vehicle | First 10,000 miles | Above 10,000 miles |
|---|---|---|
| Cars and vans | 45p | 25p |
| Motorcycles | 24p | 24p |
| Bicycles | 20p | 20p |
These are HMRC’s approved rates. Employers can pay more or less than these rates, but anything above HMRC’s rate is taxable salary, and anything below the rate gives the employee a Mileage Allowance Relief claim through their tax return.
What counts as a business journey
Only “business mileage” qualifies. The standard categories:
- Site visits: travelling to a client’s premises or a temporary workplace.
- Between offices: travelling between two of your employer’s premises.
- Sales calls and customer meetings: travelling to and from customer locations.
- Training and conferences: travelling to courses or industry events.
What doesn’t count:
- Commuting: home to permanent workplace and back. The “permanent workplace” rule is strict — if you have a regular base where you spend most of your time, journeys to and from that base are commuting, not business.
- Personal journeys: shopping, weekend trips, school runs.
- Mixed business and personal: only the business portion is claimable, prorated by miles.
The “24-month rule” can convert what looks like a temporary workplace into a permanent one. If you spend more than 40% of your working time at a single site for more than 24 months, that becomes a permanent workplace and journeys to it become non-deductible commuting.
Worked example: 12,500 business miles
A field-based employee drives 12,500 business miles in a year:
- First 10,000 miles Ã, 45p = £4,500
- Next 2,500 miles Ã, 25p = £625
- Total claim: £5,125
If the employer pays the full AMAP rate (45p/25p), the £5,125 reimbursement is tax-free. If the employer only pays 30p flat, the employee is reimbursed (12,500 Ã, 30p) = £3,750 and can claim Mileage Allowance Relief of £5,125 − £3,750 = £1,375 through their tax return. At 40% tax this saves £550 of income tax.
For a self-employed sole trader using their own car, the £5,125 is deducted from trading profit. At 20% income tax + 6% Class 4 NI = 26% combined, this saves £1,332 of tax for the year.
Records you need to keep
HMRC expects a contemporaneous mileage log. Each business journey should record:
- Date
- Reason for the journey (client name, project, meeting purpose)
- Start and end locations
- Total miles
You don’t need fuel receipts or specific journey-by-journey vehicle documentation under the AMAP system — the pence-per-mile rate covers all running costs (fuel, insurance, depreciation, maintenance) in one figure. But the journey log is essential. HMRC challenges to mileage claims often pivot on whether the records are robust. A spreadsheet with the four columns above, kept reasonably contemporaneously, satisfies the requirement.
Specialist mileage tracking apps (Driversnote, MileIQ, TripLog) automate the log via GPS and are widely used by contractors and field-based staff.
Electric and hybrid cars
The 45p/25p AMAP rates apply to all car and van fuels — petrol, diesel, hybrid and fully electric. EV drivers can claim 45p per business mile in their own EV, despite the lower running costs of an EV compared to petrol. This is a structural advantage of using a personally owned EV for business mileage.
There’s a separate set of rates — Advisory Fuel Rates (AFRs) — for company cars rather than personally-owned vehicles. AFRs are updated quarterly and reflect actual fuel costs by engine size and fuel type. EV company cars use the Advisory Electricity Rate (currently 7p per mile for 2026, reviewed quarterly). AFRs are used to reimburse fuel cost on a company car’s business journeys without the reimbursement becoming a taxable benefit.
Passenger allowance
If you give a colleague a lift on a business journey — both of you travelling for work — you can claim an extra 5p per mile per passenger from your employer. The colleague must be travelling for work, not personally. Self-employed sole traders cannot claim the passenger rate (it’s an employer-employee specific allowance).
When mileage exceeds AMAP rates
If your employer pays more than AMAP — say 60p per mile — the excess is taxable employment income. £0.60 − £0.45 = £0.15 per mile is added to your taxable salary and taxed at your marginal rate. This is rare; most employers pay at or below AMAP.
If the employer pays at AMAP for the first 10,000 miles but doesn’t drop to 25p above 10,000 (i.e. continues at 45p), the excess on miles 10,001+ is taxable. £0.45 − £0.25 = £0.20 per mile becomes taxable.
The 2026 review
HMRC announced in March 2026 that AMAP rates would be reviewed ahead of a future Budget, focusing on “people who rely on their car to do their job”. An increase would be welcome — the 45p rate has been frozen since 2011, while fuel and running costs have risen substantially. Whether and when a change comes is uncertain. The calculator on this page will update if and when new rates are confirmed.
Key takeaways
- AMAP rates for 2026/27: 45p/25p for cars and vans, 24p for motorcycles, 20p for bicycles.
- The 45p rate has been frozen since April 2011 and is under HMRC review for a possible future increase.
- A passenger allowance of 5p per mile per colleague applies for employees giving lifts to other employees on business journeys.
- Keeping a contemporaneous mileage log (date, reason, start/end, miles) is essential for HMRC compliance.
- AMAP applies to all fuel types, including fully electric cars; company cars use the separate Advisory Fuel Rates instead.
Frequently asked questions
Can I claim mileage and fuel separately? No. AMAP is a single combined rate covering fuel, insurance, depreciation, maintenance and all other running costs. You can’t claim fuel receipts on top of the AMAP rate. The exception is for company cars, where AFRs cover only fuel and the company carries the other costs.
What if my employer doesn’t reimburse mileage at all? You can claim Mileage Allowance Relief through Self Assessment or by writing to HMRC, for the full AMAP amount. If you do 8,000 business miles a year and your employer pays nothing, you can claim 8,000 Ã, 45p = £3,600 against your taxable income, saving £720 at 20% tax or £1,440 at 40%.
Can I claim mileage to and from a client meeting if I work from home? If your home is your only workplace (no employer office), then yes — every business journey from home counts. If your home is one of several workplaces and you also have a permanent office, the situation is more nuanced; HMRC may treat journeys to and from the office as commuting. Get specific advice if you have a hybrid setup.
Do mileage rates differ in Scotland? No. AMAP is UK-wide. The same 45p/25p applies in Scotland, Wales, England and Northern Ireland.