HMRC Approved Mileage Rates 2026: Everything You Need to Know

The Approved Mileage Allowance Payment (AMAP) scheme is HMRC's mechanism for reimbursing employees and allowing self-employed people to claim a deduction for using their own vehicle for business travel. The rates are simple, but there are important nuances around electric vehicles, claiming shortfalls, advisory fuel rates, and what counts as a legitimate business journey. Here is the complete picture for 2026.

AMAP Rates for 2026/27

These rates have been fixed since April 2011. At that point, petrol cost around 130p per litre. As of 2026, average pump prices are substantially higher — a reality that has fuelled considerable criticism that the rates no longer reflect actual running costs, particularly at the 45p level which must cover fuel, insurance, road tax, servicing, and depreciation.

HMRC has periodically reviewed the rates but has not announced any increase as of June 2026. Monitor HMRC EIM31205 for updates.

Who Uses AMAP Rates?

Self-Employed People

If you are self-employed and use your own vehicle (car, van, motorcycle, or bicycle) for business journeys, you can claim AMAP rates as a deduction from your trading profits via self assessment (SA100 / supplementary pages). This is the simplified mileage rate option under HMRC's simplified expenses rules.

You cannot also claim actual running costs (fuel, insurance, depreciation) if you use the AMAP method. Once you start using the mileage rate for a particular vehicle, you must continue with it for the life of that vehicle in your business.

Employees

If your employer pays you a mileage allowance, the tax treatment depends on the rate paid:

• Employer pays at or below AMAP rate: the payment is tax-free
• Employer pays above AMAP rate: the excess is a taxable benefit reported on form P11D
• Employer pays below AMAP rate: you can claim the shortfall as Mileage Allowance Relief (MAR)

Claiming Mileage Allowance Relief (MAR) as an Employee

If your employer reimburses you at less than the AMAP rate — or does not reimburse at all — you are entitled to claim MAR for the difference.

Example: You drive 8,000 business miles in the year. Your employer pays 20p/mile.

• AMAP allowance: 8,000 × 45p = £3,600
• Employer payment: 8,000 × 20p = £1,600
• MAR claim: £3,600 − £1,600 = £2,000

Tax relief on £2,000 at 20%: £400 — claimed via self assessment or by writing to HMRC to adjust your tax code.

Claiming via Self Assessment

Include the MAR figure on your self assessment return under "Employment expenses" (SA100). You can claim for up to four prior tax years if you have not claimed previously.

Claiming via P87 Form

If you do not usually submit a self assessment return, use HMRC's online P87 form to claim employment expenses including MAR. This can be done via the HMRC personal tax account at www.gov.uk/personal-tax-account.

Passengers: Additional 5p/Mile

If you carry a fellow employee as a passenger on a business journey, you can pay an additional 5p per mile per passenger, tax-free. This is in addition to the standard AMAP rate. If the employer does not pay this, the employee cannot claim it as MAR — it is only available when actually paid by the employer.

The 10,000-Mile Threshold

The 10,000-mile threshold resets each tax year (6 April to 5 April). If you drive 12,000 business miles in a year:

• First 10,000 miles: 45p × 10,000 = £4,500
• Remaining 2,000 miles: 25p × 2,000 = £500
• Total deduction: £5,000

For most self-employed people, the drop to 25p above 10,000 miles is significant. High-mileage workers (sales representatives, mobile traders, field engineers) should consider whether the actual cost method would yield a larger deduction in those circumstances.

Electric Vehicles and AMAP

HMRC confirmed that electric cars and vans use the same AMAP rates as petrol and diesel vehicles: 45p for the first 10,000 miles, 25p above. There is no special AMAP uplift for electricity costs.

However, for company car users (where the employer owns or leases the vehicle and the employee drives it), a separate Advisory Electricity Rate (AER) applies for reimbursement of electricity costs. As of 2026, the AER is 9p per mile (reviewed quarterly by HMRC). This is entirely separate from personal vehicle AMAP.

Consultation on EV AMAP

HMRC has been under pressure to introduce a specific higher AMAP rate for electric vehicles, on the grounds that EV owners face different costs (higher purchase price, home charging infrastructure) than the current 45p rate was designed to reflect. As of June 2026, no formal change has been announced. Check HMRC's guidance for updates.

Advisory Fuel Rates: Company Cars

For employees who use a company-owned vehicle for business travel and want to be reimbursed purely for fuel (not depreciation, insurance, etc.), HMRC publishes Advisory Fuel Rates (AFRs) quarterly.

These rates differ by engine size and fuel type. Approximate AFRs as of April 2026 (check HMRC AFR table for current figures):

AFRs are only relevant for company car users — not personal vehicle users. Personal vehicle users always use AMAP rates.

Keeping a Mileage Log

A mileage log is your primary defence in the event of an HMRC enquiry. It should record for every business journey:

1. Date of the journey
2. Start and end points (addresses, not just place names)
3. Business purpose of the journey (e.g., "client meeting at XYZ Ltd, London")
4. Miles driven

Cumulative totals should be maintained to track when the 10,000-mile threshold is crossed.

Many drivers use smartphone apps (MileIQ, TripLog, AutoMileage) that use GPS to auto-log journeys, which you then classify as business or personal. These produce HMRC-acceptable digital records.

Commuting: journeys between your home and a permanent place of work are not business miles and cannot be included. If you work from home, any journey to a client's premises is a business journey. If you have a fixed office, the journey between your home and that office is always private.

Actual Costs vs AMAP: Which Is Better?

For most self-employed people, AMAP is the right choice because:

• No need to track actual fuel costs, insurance, road tax separately
• No apportionment calculation required
• Records are simpler (just mileage log)

Actual costs may be better if:

• You have a very expensive vehicle with high running costs
• You drive substantially more than 10,000 business miles
• You have a van or high-mileage diesel where actual fuel costs plus other expenses exceed the AMAP allowance

Once you choose the actual cost method for a vehicle, you cannot switch back to AMAP for that same vehicle.

Summary

The 45p/25p AMAP rate is simple to apply, widely accepted by HMRC, and appropriate for most self-employed people and employed workers with business travel. Keep a reliable mileage log — contemporaneous records are far more convincing than reconstructed estimates. If you are an employee being underpaid by your employer, claim MAR promptly as you can only go back four years.