UK Mileage Allowance 2026/27 — 45p/mile, AMAP Rates, How to Claim
Reviewed by Alex Morgan · Updated April 2026 · AMAP rates frozen since 2011
2026/27 AMAP rates
| Vehicle | First 10,000 business miles | Above 10,000 miles | Tax-free per year (max) |
|---|---|---|---|
| Car / van | 45p/mile | 25p/mile | £4,500 + (excess × 25p) |
| Motorcycle | 24p/mile | 24p/mile | No 10k threshold — flat rate |
| Bicycle | 20p/mile | 20p/mile | Flat rate |
| Passenger payment (additional) | 5p/mile | 5p/mile | Per fellow employee carried for business reasons |
The 45p/25p split for cars hasn't changed since 6 April 2011 — over 15 years frozen. Treasury and OBR reviews have repeatedly noted the rate is now significantly below true running costs (estimated ~60p/mile in 2026 by AA, RAC and HMRC's own internal modelling). No uplift announced for 2027.
Worked example — 12,000 business miles a year
Sales rep doing 12,000 business miles in their own car
- First 10,000 miles × 45p = £4,500
- Next 2,000 miles × 25p = £500
- Maximum tax-free AMAP this year: £5,000
Three scenarios
- Employer pays 45p/25p (matches AMAP): receive £5,000 tax-free. No claim needed.
- Employer pays 25p flat (below AMAP): receive £3,000. Claim MAR on the £2,000 shortfall — 40% higher-rate worker saves £800 tax.
- Employer pays 60p flat (above AMAP): receive £7,200. £5,000 tax-free + £2,200 taxable as earnings (~£924 tax+NI for higher-rate worker). Net retained: ~£6,276.
What counts as "business mileage"
AMAP applies only to business mileage, defined as journeys made wholly and exclusively for business purposes. The sharpest distinction is between business and ordinary commuting:
| Journey type | Business mileage? | Notes |
|---|---|---|
| Home → permanent workplace | ❌ No | Ordinary commute, never claimable |
| Permanent workplace → client / external meeting | ✅ Yes | Standard business journey |
| Home → client (skipping office) | ✅ Yes | From home directly to client = business journey |
| Home → temporary workplace | ✅ Yes (24-month rule) | Allowed if posting is <24 months expected |
| Travel to a permanent workplace via a brief work errand | ❌ Mostly no | If the journey is "in substance" the commute, not business |
| Multi-stop business day starting from home | ✅ Yes (full route) | Common for sales reps, engineers, delivery |
| Site work for >24 months expected | ❌ Becomes commute | Once duration crosses the 24-month threshold, the workplace is "permanent" and commute |
How to claim Mileage Allowance Relief if your employer pays below AMAP
- Keep a contemporaneous mileage log. Date, start, end, business purpose, miles. Apps like MileIQ, TripLog, or just a Google Sheet work. HMRC can request the log going back 4 years.
- Calculate the shortfall: (AMAP rate × business miles) − (what your employer paid you). The difference is what you can claim relief on.
- For shortfalls under £2,500/year: file form P87 at gov.uk → "Tax relief for expenses of employment". Fast online form. Tax saving applied via PAYE code adjustment within ~6 weeks.
- For shortfalls over £2,500/year: must file Self Assessment with SA102 employment supplementary page. Same calculation, but goes through the SA system.
- You can claim 4 years back: form P87 supports backdated claims to the four previous tax years. Good for new awareness — many employees discover they could have been claiming and back-claim £1,000-£3,000.
Company car — Approved Fuel Rates (different regime)
AMAP doesn't apply to company cars. Instead HMRC publishes Approved Fuel Rates (AFR) quarterly:
| Engine size / fuel | Indicative March 2026 rate |
|---|---|
| Petrol up to 1400cc | ~12p/mile |
| Petrol 1401-2000cc | ~14p/mile |
| Petrol over 2000cc | ~22p/mile |
| Diesel up to 1600cc | ~12p/mile |
| Diesel 1601-2000cc | ~13p/mile |
| Diesel over 2000cc | ~17p/mile |
| Electric (Advisory Electricity Rate, AER) | 8p/mile |
Always check current AFR at gov.uk/government/publications/advisory-fuel-rates as it changes quarterly. Pay above AFR with a company car = excess is taxable. Pay below = claim difference via P87 / SA, same mechanic as AMAP for personal cars.
Common errors employees make
- Claiming the commute — most common error. Home → main office is not business mileage.
- No mileage log — claims without records are fine until HMRC opens an enquiry. Then you're stuck.
- Mixing personal trips into the log — only business journeys go in. Petrol-station detours are fine; lunchtime errands are not.
- Forgetting the 10,000-mile cliff — once you're over 10k for the year, the marginal rate drops from 45p to 25p, dramatically affecting your claim.
- Failing to back-claim — you can claim 4 years backwards via P87. Many newly-aware employees recover £1k-£3k.
- Confusing AMAP with company-car rules — different regimes, different rates.
- Not telling HMRC about above-AMAP employer payments — these are taxable; employer should report on P11D, but employee is liable to declare if they don't.
Pair this with
- → UK Self Assessment 2026/27 — for shortfalls over £2,500/yr
- → UK Cycle to Work Scheme 2026 — bicycle commute alternative
- → UK tax reliefs at work — 15 guides
- → UK Personal Allowance 2026/27
- → UK salary sacrifice 2026/27
- → UK Take-Home Pay Calculator