United Kingdom · HM Revenue & Customs
HMRC mileage rates 2026/27
Cars & vans, first 10,000 miles6 Apr 2026 – 5 Apr 2027
55p / mile
Then 25p per mile above 10,000. Add 5p per business passenger carried.
Full AMAP table for 2026/27
| Vehicle | First 10,000 miles | Above 10,000 miles | Changed? |
|---|---|---|---|
| Car or van | 55p | 25p | Yes — up from 45p |
| Motorcycle | 24p | 24p | No |
| Bicycle | 20p | 20p | No |
| Passenger supplement | +5p | +5p | No — per employee passenger, cars only |
The rates are designed to cover the whole cost of running your own vehicle for work — fuel, insurance, servicing, depreciation — in one per-mile figure. Electric cars use the same AMAP rates as petrol or diesel when they're privately owned. Company cars are a different regime entirely: they use HMRC's quarterly Advisory Fuel Rates, not the table above.
2026/27 mileage claim calculator
The 10,000-mile threshold is applied automatically. Example: 12,000 miles = (10,000 × 55p) + (2,000 × 25p) = £6,000.
Reimbursed at 45p since April? You're owed relief
Because the increase is retroactive to 6 April 2026, every business mile your employer reimbursed at the old 45p rate carries a 10p shortfall. That shortfall qualifies for Mileage Allowance Relief (MAR).
Worked example: 5,000 business miles reimbursed at 45p leaves a £500 shortfall (5,000 × 10p). MAR is a deduction, not a cash payment — a basic-rate taxpayer gets £100 back (20%), a higher-rate taxpayer £200 (40%). Claim it through Self Assessment if you file one, or form P87 if you don't and your total expense claim is under £2,500. Employers can alternatively top up the difference directly, tax-free, now that 55p is the approved rate.
How the rules differ by situation
Employees using their own car: your employer can pay up to the AMAP rate tax-free. Below it, claim MAR on the gap. Above it, the excess is taxed as earnings.
Self-employed: you can use the same per-mile rates as "simplified expenses" instead of tracking actual vehicle costs — but once you've used simplified expenses for a vehicle, you stick with it for as long as you own that vehicle.
Directors of their own company: a common arrangement is owning the car personally and claiming AMAP from the company, avoiding a company-car benefit-in-kind charge. The 10p increase makes this noticeably more attractive for low-to-mid mileage.
In every case the same boundary applies: ordinary commuting between home and a permanent workplace is not business travel. Client visits, temporary workplaces and travel between work sites are.
Why the rate finally moved
The 45p rate stood for fifteen years while fuel, insurance and maintenance costs climbed — the AA, the RAC and the Association of Taxation Technicians all lobbied for a review, and the House of Commons Library's own briefing noted that a like-for-like cost calculation pointed well above 45p. Parliament debated the freeze in March 2026; the increase followed in May. Worth knowing: the 25p over-10,000 rate, the motorcycle and bicycle rates, and the 5p passenger supplement were all left untouched, so high-mileage drivers gained less than the headline suggests.
Common questions
Does the 10,000-mile threshold reset each year?
Yes — on 6 April, the start of the tax year. It counts business miles per employment, so two unrelated jobs each get their own threshold.
My employer pays 60p per mile. What happens?
The 5p above the approved 55p rate is reported and taxed as earnings. Nothing stops an employer paying more; it just isn't tax-free beyond the AMAP amount.
What rate do electric company cars use?
Company cars (any fuel) fall under Advisory Fuel Rates rather than AMAPs, with a separate advisory electric rate that HMRC reviews quarterly and that differs for home versus public charging. Check the current AFR table on GOV.UK before setting policy — it moves more often than the AMAP rates.
Do I need receipts?
Not fuel receipts — the per-mile rate replaces them. You do need journey records: date, start and end points, miles and business purpose for each trip. Employers paying AMAPs and HMRC processing MAR claims can both ask to see them.
Primary sources
- GOV.UK, Travel — mileage and fuel rates and allowances (rate table updated 21 May 2026)
- House of Commons Library, research briefing CBP-9742, Mileage Allowance Payments
- Income Tax (Earnings and Pensions) Act 2003, ss. 229–236 (the AMAP legal framework)
General information, not tax advice. Personal circumstances — company cars, salary sacrifice, multiple employments — change the analysis. Confirm against GOV.UK or a qualified adviser before acting.