What are HMRC mileage allowance rates?

HMRC Approved Mileage Allowance Payments (AMAP) are the tax-free rates you can claim for using your own vehicle for business travel. For cars and vans, the rate is 45p per mile for the first 10,000 miles in a tax year, and 25p per mile after that. Motorcycles are 24p per mile, and bicycles 20p per mile.

What counts as business miles?

Business miles are journeys made for work purposes, not including your regular commute. Travelling to a different office, visiting clients, going to meetings at different locations, and travelling to training courses all count. Your normal home-to-work commute does not qualify as business mileage.

Can I claim for carrying passengers?

Yes, if you carry a colleague as a passenger on a business journey, you can claim an extra 5p per mile for each passenger. This applies to each qualifying passenger on each business journey. The passenger must also be making the journey for business purposes.

What if my employer pays less than the HMRC rate?

If your employer reimburses you less than the AMAP rate, you can claim tax relief on the difference through your Self Assessment tax return or by contacting HMRC. For example, if your employer pays 20p per mile but the AMAP rate is 45p, you can claim relief on the 25p difference.

Do I need to keep records?

Yes, you must keep records of your business mileage including the date, destination, purpose of the journey, and miles driven. HMRC may ask to see these records if they investigate your claim. A mileage log or app that records each journey is recommended.

CarCalcs

Mileage Allowance Calculator — HMRC AMAP Rates

Calculate your HMRC mileage allowance payments for business travel in your own vehicle.

Business Miles (per tax year)

Vehicle Type

Your Tax Rate

Passenger Miles

Miles travelled carrying business passengers

How We Calculate This

HMRC AMAP Rates (2025/26 Tax Year)

Cars and vans: 45p per mile (first 10,000 miles), 25p per mile (over 10,000)
Motorcycles: 24p per mile (all miles)
Bicycles: 20p per mile (all miles)
Passenger supplement: 5p per mile per qualifying passenger

Tax Relief Calculation

If you are not reimbursed the full AMAP rate, you can claim tax relief on the shortfall. Your tax saving depends on your marginal rate: 20% for basic rate, 40% for higher rate, or 45% for additional rate taxpayers.

Frequently Asked Questions

Related Calculators

Insurance Group Calculator

Estimate your car's insurance group and understand what affects it.

No Claims Discount Calculator

Calculate how much your no claims bonus saves on your premium.

Gap Insurance Calculator

Calculate the gap between your car's value and finance outstanding.

Car Loan Calculator

Calculate monthly payments, total interest, and total cost for a car loan.

PCP Calculator

Calculate PCP monthly payments, total cost, and optional final payment.

Last updated: February 2026

All calculations are estimates. Actual figures may vary based on driving conditions, vehicle specifications, and other factors.