Calculate your HMRC mileage allowance
Work out the tax-free mileage allowance you can claim for business travel, using HMRC's approved mileage rates for cars, vans, motorcycles and bicycles.
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What is the HMRC mileage allowance?
The HMRC mileage allowance — officially the Approved Mileage Allowance Payment (AMAP) — is a tax-free rate employees and the self-employed can claim for using their own vehicle for business journeys. It's designed to cover fuel, wear and tear, insurance and other running costs, so employers can reimburse staff, or the self-employed can claim the allowance against their profits, without triggering additional tax.
What are the current AMAP rates?
Cars and vans attract 45p per mile for the first 10,000 business miles in a tax year, dropping to 25p per mile for every mile after that. Motorcycles are paid at a flat 24p per mile, and bicycles at a flat 20p per mile, both regardless of total mileage.
Why does the 10,000-mile threshold matter?
The higher 45p rate only applies to the first 10,000 business miles a car or van covers in a tax year — every mile beyond that is paid at the lower 25p rate. The threshold resets each tax year and applies per employee, not per vehicle, so it covers total business mileage even if more than one vehicle is used.
How do I claim mileage allowance relief?
If your employer pays a mileage rate below the HMRC AMAP rate — or doesn't reimburse you at all — you can claim Mileage Allowance Relief on the shortfall. Keep a log of dates, destinations and mileage for each business journey, then claim through a Self Assessment return or form P87 if you're not required to file one.
Does the mileage allowance cover passengers?
Employers can pay an additional 5p per mile, tax-free, for each colleague carried as a passenger on a business journey in a car or van. This passenger payment sits on top of the standard AMAP rate and isn't available for motorcycles or bicycles.
What counts as business mileage?
Business mileage covers journeys made specifically for work — travelling between sites, visiting clients, or attending temporary workplaces. Ordinary commuting between home and a permanent workplace doesn't qualify, so keep it separate when logging your trips.
People also ask
- 45p per mile for the first 10,000 business miles in the tax year, then 25p per mile for any additional business miles.
- Yes. HMRC applies the same AMAP rates — 45p then 25p per mile — to electric and hybrid cars as to petrol and diesel vehicles.
- Motorcycles are paid at a flat 24p per mile and bicycles at a flat 20p per mile, with no reduction after 10,000 miles.
- Not if your employer pays at or below the HMRC AMAP rate. Any amount paid above the approved rate is treated as taxable income.
- Yes. Self-employed drivers can use the AMAP flat rates as a simplified way to claim vehicle expenses against their business profits, instead of tracking actual running costs.
