What are the HMRC approved mileage rates for using my own car for work?

Full answer

When an employee uses their own car, van, motorcycle or bicycle for genuine business journeys (not ordinary commuting to a regular fixed workplace), HMRC allows employers to reimburse them at set Approved Mileage Allowance Payment (AMAP) rates without the reimbursement being treated as taxable income or subject to National Insurance, provided the payment does not exceed these rates. For a car or van, the rate is 45p per mile for the first 10,000 business miles driven in a tax year, dropping to 25p per mile for any business mileage beyond that 10,000-mile threshold within the same tax year, reflecting the assumption that higher-mileage drivers benefit from some economies of scale in running costs. Motorcycles have their own flat rate of 24p per mile regardless of total mileage, and bicycles have a rate of 20p per mile, both without the 10,000-mile stepped reduction that applies to cars and vans. If an employer pays less than the full HMRC-approved rate, or does not reimburse mileage at all, the employee can claim tax relief on the shortfall between what they actually received and the full approved rate, calculated on their total business mileage for the year, either through a P87 form (for smaller claims) or via Self Assessment if they already file a return for other reasons. Conversely, if an employer pays more than the approved rate per mile, the excess above the AMAP rate is treated as a taxable benefit and must be reported, typically via payroll or a P11D. These rates are specifically for using a personal vehicle -- company car drivers use a different fuel-only advisory rate system instead, since they do not bear the full cost of owning and running the vehicle themselves.