UK Mileage Allowance (AMAP) Complete Guide 2026/27

What are the AMAP Rates

Approved Mileage Allowance Payments (AMAP) are the HMRC-approved rates at which employers can reimburse employees for using their own vehicles for business travel, without creating a taxable benefit or triggering employer or employee National Insurance contributions. The rates were introduced by the Finance Act 2002 and replaced the earlier Fixed Profit Car Scheme.

AMAP rates represent a simplified per-mile reimbursement that covers all costs of using a private vehicle for business -- not just fuel but also wear and tear, insurance (business use element), servicing, MOT costs and depreciation. The rates are deliberately set at a level that approximates the total cost per mile for an average vehicle.

The rates have remained unchanged since April 2011 despite substantial fuel cost inflation and rising vehicle running costs. The RAC and AA have repeatedly called for the AMAP rates to be uprated, and the government's decision not to do so is widely regarded as resulting in many employees receiving less reimbursement than their actual costs -- making MAR claims increasingly important.

Cars vs Motorcycles vs Bicycles

Each vehicle type has a specific rate and threshold structure:

Cars and vans: the 45p rate applies to the first 10,000 business miles across all business use of the employee's own car or van in a tax year. This threshold is cumulative across all employers and all business journeys in the year. Once 10,000 miles is reached, the rate drops to 25p for subsequent miles. The vehicle type (engine size, fuel type, age) does not affect the AMAP rate -- a new electric SUV and a 15-year-old diesel hatchback both attract 45p per mile. Electric and hybrid vehicles owned privately by employees are treated the same as conventional vehicles.

Motorcycles: the flat 24p rate applies to all business miles with no 10,000-mile step-down. Motorcycles are defined broadly to include mopeds, scooters and motorbikes. The rate reflects the lower overall running cost of a motorcycle compared with a car.

Bicycles: the 20p rate applies to pedal cycles used for business travel. This includes standard bicycles and e-bikes (where the e-bike is privately owned by the employee). It does not include bikes provided by the employer under the Cycle to Work scheme (which are employer-owned). The bicycle AMAP rate reflects the relatively low running cost of a bicycle -- mainly maintenance and wear of tyres.

There is no separate AMAP rate for personal watercraft, horse travel, or other transport modes. Taxi and public transport expenses are reimbursed as actual costs (receipted), not via an AMAP rate.

How to Claim as an Employee (P87 Form)

Employees who have driven their own vehicle for business purposes and been either not reimbursed at all, or reimbursed at less than the AMAP rate, can claim Mileage Allowance Relief (MAR) using form P87:

1. Online claim via HMRC's personal tax account -- available for claims up to £2,500 per year. Login with Government Gateway credentials, navigate to "Claim a tax refund" and select "Expenses of employment (P87)".
2. Postal P87 form for claims above £2,500 or where the employee cannot access online services. The form is available from HMRC's website or can be requested by phone.
3. Self assessment return -- employees who file a self assessment return can include the MAR claim on their SA100 form, in the employment pages (SA102).

Information needed for a P87 claim:

• Employer name and PAYE reference.
• Total business miles driven in the tax year.
• Amount already reimbursed by employer (if any).
• AMAP entitlement minus employer payment = claimable shortfall.
• A declaration that the claim is accurate and supported by records (mileage log).

Claims can be made for the current tax year and backdated for up to 4 previous tax years (so in June 2026 you can claim back to 2022/23). HMRC processes most online P87 claims within 4 to 12 weeks and pays refunds by BACS or cheque. Keep your mileage log in case HMRC enquires into the claim.

How to Claim as Self-Employed (Self Assessment)

Self-employed individuals have two options for claiming vehicle costs on their self assessment return:

Option 1: Simplified mileage expenses (AMAP rates)

Claim the AMAP rates directly on the SA103 Self Employment supplementary pages under "Motor expenses." Multiply total business miles by the applicable rate: 45p x first 10,000 miles + 25p x miles above 10,000. No other vehicle costs can be claimed for that vehicle in the same year (the simplified rate covers everything). This method is simpler but may undervalue the claim if actual costs are higher.

Option 2: Actual costs method

Claim actual vehicle running costs (fuel, insurance, servicing, road tax, MOT) apportioned for business use based on actual miles. Capital allowances (or Annual Investment Allowance) can also be claimed on the purchase price of the vehicle. This method requires detailed records of all vehicle costs but may produce a higher deduction for high-mileage, high-cost vehicles.

Once a method is chosen for a specific vehicle, it must be used consistently for that vehicle for as long as it is used in the business. Switching between methods mid-use is not permitted. For most self-employed individuals with lower annual mileage, the simplified AMAP method is administratively simpler and produces a comparable deduction.

Mileage Log Requirements

HMRC does not prescribe a specific format for mileage logs but expects records sufficient to verify the claim. A compliant mileage log should record for each business journey:

• Date of the journey.
• Start and end points (town, postcode, or address is sufficient -- full addresses add credibility).
• Purpose of the journey (e.g. "client meeting -- ABC Ltd, Bristol" or "delivery to customer -- XYZ, Leeds").
• Distance (either from odometer readings at start and end, or the total miles for that journey recorded from a mapping app or distance calculator).
• Cumulative annual total (to track where the 10,000-mile threshold is reached).

Electronic mileage logs are fully accepted by HMRC. Popular apps (MileIQ, TripLog, Driversnote, Everlance) automatically record GPS-tracked journeys and allow tagging as business or personal. These create a strong audit trail and should be preferred over retrospective manual reconstruction.

Mileage records should be retained for at least 6 years from the end of the tax year to which they relate. If HMRC opens an enquiry into a mileage claim, the log is the primary evidence. A claim without supporting records can be wholly or partly disallowed, leading to tax, interest and potentially penalties.

When Your Employer Pays Less than AMAP (MAR Claim)

Many employers pay a mileage rate lower than the AMAP rate -- often 20p to 35p per mile -- or pay no mileage allowance at all. In these cases, the employee can claim Mileage Allowance Relief on the shortfall:

The claim is made on form P87 (or SA102 if filing self assessment). The employer should provide a P11D or mileage reimbursement statement showing the amount paid, but if the employer does not issue this, the employee's own payslips or expense records showing reimbursements received are acceptable evidence.

If your employer reimburses more than the AMAP rate, the excess is taxable income that should have been processed through PAYE. If it was not, the employee is responsible for declaring it on a self assessment return.

Claiming for Passengers

An employer can pay an additional 5p per mile per passenger where an employee carries a fellow employee in their own car on a business journey. This additional passenger payment is tax and NI free up to 5p per mile per passenger.

Example: an employee drives 200 miles to a conference and gives two colleagues a lift. The employer pays 45p per mile (car AMAP) plus 5p per passenger x 2 passengers = 10p extra per mile. Total: 55p per mile for 200 miles = £110 -- all tax and NI free because the car rate is at AMAP and the passenger supplement is at or below 5p.

The passenger supplement rules:

• The passenger must be a fellow employee of the same employer (or a group company employee).
• The passenger must also be making the journey for business purposes.
• The 5p rate is per passenger per mile -- carrying two passengers allows 10p extra per mile.
• The passenger supplement is in addition to the car AMAP -- not instead of it.
• If the employer does not pay the 5p supplement, the employee cannot claim MAR on the passenger element (MAR only applies to the vehicle rate shortfall, not the passenger rate).

Advisory Fuel Rates for Company Cars vs AMAP

HMRC publishes Advisory Fuel Rates (AFR) quarterly for use with company cars -- not AMAP. The distinction is critical:

AFRs are used in two company car scenarios: (1) an employer reimburses an employee for business fuel in a company car -- payment at AFR is not a taxable benefit; (2) an employee with a company car and fuel benefit repays the employer for private fuel at AFR per private mile to avoid the fuel benefit charge (which can be substantial -- the car fuel benefit multiplier for 2026/27 is £27,800 x the same BIK percentage as the car benefit).

Never apply AMAP rates to a company car -- that would be incorrect (AMAP is for private vehicles only). And never apply AFRs to a privately-owned vehicle -- those rates cover fuel only and would significantly undercompensate the employee.