AMAP Mileage Rate 2026: How to Claim 45p/Mile Tax-Free for Business Travel

If you use your own car for business travel, you are entitled to a tax-free mileage payment from your employer -- or a tax deduction if you are self-employed -- at HMRC's Approved Mileage Allowance Payment (AMAP) rates. The rates have not changed for many years, but they remain one of the most straightforward and accessible tax reliefs available. Here is how to use them correctly.

The AMAP Rates for 2026/27

The AMAP rates for cars and vans are:

• First 10,000 business miles in the tax year: 45p per mile
• Each mile above 10,000: 25p per mile

For motorcycles the rate is 24p per mile at all levels. For bicycles it is 20p per mile.

These rates are approved by HMRC. Up to these amounts, the payment is completely free of income tax and National Insurance for the employee.

How AMAP Works for Employees

If your employer pays you a mileage rate at or below the AMAP rate, there is no tax or NI liability and no reporting obligation for either you or your employer. You simply receive the payment tax-free.

If your employer pays you more than the AMAP rate -- say 50p per mile -- the excess (5p per mile in this example) is treated as a taxable benefit. Your employer must report it on a P11D or through payroll, and you pay income tax and your employer pays NI on the excess.

If your employer pays you less than the AMAP rate -- or nothing at all -- you can claim tax relief on the shortfall through HMRC. This is called Mileage Allowance Relief (MAR).

Claiming Mileage Allowance Relief (MAR)

If your employer pays you 25p per mile and you have driven 8,000 business miles:

• AMAP you were entitled to: 8,000 x 45p = GBP 3,600
• Amount received from employer: 8,000 x 25p = GBP 2,000
• Shortfall eligible for tax relief: GBP 1,600

You claim this GBP 1,600 shortfall as a tax deduction. The actual tax saving depends on your marginal rate:

• Basic rate taxpayer (20%): saves GBP 320
• Higher rate taxpayer (40%): saves GBP 640

You claim MAR via Self Assessment or, if you do not complete a tax return, by writing to HMRC or using the HMRC Personal Tax Account online. You can claim back up to four years.

What Counts as Business Mileage?

Business mileage means travel between your normal place of work and a temporary workplace, or travel between two workplaces. It does not include ordinary commuting (travelling between your home and your regular permanent place of work) which is not tax-deductible.

If you work from home and your home is your base of operations (for example, because you have no fixed employer premises), travel from home to client sites may qualify as business mileage. This is particularly relevant for field-based employees and self-employed sole traders.

AMAP for Self-Employed and Sole Traders

Self-employed people and sole traders can use the AMAP rate as a simplified method for vehicle costs instead of claiming actual costs. This is called the simplified expenses method for vehicles.

If you use AMAP, you multiply your business miles by the rate and deduct the total from your self-employment income on your Self Assessment return:

• First 10,000 business miles: 45p per mile
• Above 10,000 miles: 25p per mile

You cannot also claim actual costs (fuel, insurance, servicing, depreciation) if you use the AMAP rate. It is one or the other, and you must stick with the same method for as long as you own the vehicle.

For high-mileage drivers with fuel-efficient cars, actual costs may sometimes exceed AMAP rates. For most sole traders, AMAP is simpler and competitive.

Passenger Add-On Rate

If you carry a colleague or fellow employee as a passenger on a business trip and your employer pays you a passenger rate, HMRC allows an additional 5p per mile per passenger, tax-free. This covers car-sharing situations where employees travel together to the same client or office.

Example: You drive 200 miles to a client meeting with two colleagues. The tax-free addition is 200 miles x 5p x 2 passengers = GBP 20, on top of the standard 45p per mile for the trip.

Keeping Records

To claim AMAP or MAR, you must keep a mileage log. HMRC expects you to record:

• Date of each trip
• Start and end point (or description of journey)
• Business purpose
• Miles driven

A simple spreadsheet or a mileage app works well. Without records, HMRC can reject a claim on inspection.

Electric Vehicles and AMAP

The AMAP rate applies to your own car regardless of whether it runs on petrol, diesel, or electricity. There is no separate AMAP rate for electric vehicles. However, employers who provide a company electric vehicle cannot use AMAP for that vehicle -- AMAP only applies when the employee uses their own vehicle.

The advisory electricity rate for employees driving company electric vehicles is set separately by HMRC (currently around 7p per mile) and is updated quarterly. This is distinct from AMAP.

Year-End Check

Before 5 April each year, tally up your total business mileage. If you are approaching 10,000 miles, note the exact point at which the rate drops to 25p. If you have claimed less than you are entitled to in previous years, you have four years to submit a retrospective claim.

Use the CalcHub mileage tax relief calculator to calculate your AMAP entitlement and the tax saving from claiming the shortfall.