Cycling to Work: The 20p Mileage Rate and How to Claim It Tax-Free
If your employer doesn't pay mileage for cycling to work, you can claim tax relief on the shortfall yourself. Here is how the 20p per mile approved rate works and how to actually claim it.
The 20p Per Mile Approved Rate
HMRC's Approved Mileage Allowance Payments (AMAP) scheme allows employers to reimburse employees for using their own vehicle for business journeys, tax-free, up to set approved rates. For bicycles, the rate is 20p per mile — separate from the rates for cars (45p for the first 10,000 miles, 25p thereafter) and motorcycles (24p per mile).
This rate applies specifically to business mileage: journeys undertaken as part of your job duties, such as travelling between different work sites, visiting clients, or attending off-site meetings — not your regular daily commute between home and a single, permanent workplace.
Business Mileage vs Ordinary Commuting
| Journey type | Qualifies for the 20p/mile relief? |
|---|---|
| Cycling from home to your normal, permanent workplace | No — ordinary commuting, not eligible |
| Cycling from your workplace to visit a client, then back | Yes — genuine business journey |
| Cycling between two different work sites during the day | Yes — genuine business journey |
| Cycling to a temporary workplace (subject to the 24-month rule) | Generally yes, if it meets the temporary workplace conditions |
This distinction is identical in principle to how mileage relief works for car journeys — the key question is always whether the journey is "ordinary commuting" (not eligible) or a genuine business journey beyond your normal commute (eligible).
How to Claim If Your Employer Pays Less Than the Approved Rate
| Employer's mileage payment | Your position |
|---|---|
| Employer pays 20p/mile or more | No further claim available; the amount is either fully tax-free (at 20p) or the excess above 20p is taxable |
| Employer pays less than 20p/mile (e.g., 10p) | You can claim tax relief on the shortfall (10p/mile in this example) |
| Employer pays nothing for business cycling mileage | You can claim tax relief on the full 20p/mile for qualifying business mileage |
Worked example
| Detail | Figure |
|---|---|
| Qualifying business miles cycled in the tax year | 500 miles |
| Employer's mileage payment | 5p/mile = £25 total |
| Approved rate entitlement | 20p/mile = £100 total |
| Shortfall you can claim tax relief on | 15p/mile × 500 = £75 |
| Actual tax relief received (basic rate, 20%) | £15 (20% of £75) |
| Actual tax relief received (higher rate, 40%) | £30 (40% of £75) |
Note that the £75 "shortfall" figure is the amount of tax relief base you can claim — the actual cash benefit to you is that amount multiplied by your marginal income tax rate, since it works as a deduction against your taxable income, not a direct cash reimbursement of the full shortfall.
How to Actually Make the Claim
| Route | When to use it |
|---|---|
| P87 form | For employees not already in Self Assessment, with relief claims typically under a certain threshold (check current HMRC limits) — can often be submitted online via your Personal Tax Account |
| Self Assessment tax return | If you already file a return for other reasons, include the claim as an employment expense within the return |
| Phone/post | HMRC also accepts claims by phone for straightforward, smaller amounts in some circumstances |
Keep a mileage log recording the date, purpose, and distance of each qualifying business journey — HMRC can request evidence to support a claim, and a contemporaneous log is far more credible than an estimate reconstructed after the fact.
If Your Employer Pays More Than 20p Per Mile
Any amount paid above the 20p per mile approved rate is treated as a taxable benefit, not tax-free reimbursement. Your employer should account for this correctly — typically either through payroll (adding the excess as taxable pay) or by reporting it on a P11D — and you shouldn't need to take separate action, though it's worth checking your payslips or P11D to confirm this has been handled correctly if your employer pays a notably generous cycling mileage rate.
Combining With a Cycle to Work Salary Sacrifice Scheme
The 20p per mile mileage relief and a cycle to work salary sacrifice scheme (covered in our separate guide) address two entirely different things: the salary sacrifice scheme relates to how you tax-efficiently acquire the bike itself, while the mileage allowance relates to reimbursement for qualifying business journeys made using a bicycle you already own. There's no conflict between benefiting from both, provided you separately meet the qualifying conditions for each.
Frequently asked questions
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