Answers · UK 2025/26
What are the HMRC mileage rates 2025/26?
HMRC approved mileage rates: cars/vans 45p/mile (first 10,000 miles), 25p above; motorcycles 24p; bicycles 20p. Tax-free if your employer pays at these rates. Self-employed claim same rates as expense. Passenger payment 5p/mile per business passenger.
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UK HMRC Approved Mileage Allowance Payment (AMAP) rates 2025/26 — unchanged since 2011. Cars and vans: 45p/mile for first 10,000 business miles in the tax year, 25p/mile for additional miles. Motorcycles: 24p/mile. Bicycles: 20p/mile. Passenger payment: extra 5p/mile per fellow business-purpose passenger. Employee tax: if your employer pays the AMAP rates or less, no tax. If they pay more, the excess is taxable. If they pay less, you can claim Mileage Allowance Relief (MAR) for the shortfall via Self Assessment or P87 form. Self-employed: claim same rates as a business expense — reduces taxable profit. Alternative: claim actual fuel + running costs (more admin, only worth it for company-car-style usage). Business mileage: trips to client sites, between work locations, training events. NOT commuting (home to regular workplace). Many people miss MAR claims — for a basic-rate taxpayer driving 5,000 business miles at 20p (employer rate), MAR claim is 5,000 × 25p shortfall × 20% = £250 refund. Records: HMRC requires date, destination, business purpose, miles for at least 5 years.
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This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.