Complete UK Mileage Allowance Guide
Maximise your business travel claims. Understand HMRC approved mileage rates (AMAP), learn how to calculate your entitlement, and claim tax relief with confidence.
Understanding Mileage Allowance
If you use your personal vehicle for work-related travel, you are likely entitled to financial compensation. The UK’s Approved Mileage Allowance Payments (AMAP) system ensures you can cover fuel, wear, and tear without facing unexpected tax bills.
Key Features of Mileage Claims
Everything you need to know about business travel allowances
Approved Mileage Allowance Payments (AMAP)
AMAP is the maximum amount an employer can pay you for business mileage tax-free. If your employer pays less than this (or nothing), you can claim tax relief on the difference from HMRC.
Qualifying Business Travel
This includes travel between different work sites, visits to clients, or journeys to temporary workplaces. It explicitly excludes your normal daily commute from home to your permanent workplace.
Self-Employed Deductions
If you are self-employed, you can use the simplified flat-rate mileage expenses to deduct vehicle costs from your taxable profits, avoiding the need to calculate actual fuel, insurance, and repair costs.
Passenger Allowances
If you carry fellow employees in your car on business journeys, you can claim an additional tax-free passenger payment of up to 5p per mile per passenger, on top of your standard mileage rate.
Mileage Allowance Quick Facts
Essential limits and rules to remember for your claims
How to Calculate & Claim Mileage
Securing your rightful mileage allowance or tax relief is a straightforward process when you follow these logical steps.
Log Your Business Journeys
Record the date, start and end locations, business purpose, and exact mileage of every qualifying trip. Exclude your regular home-to-office commute.
Calculate Your Total Entitlement
Apply the HMRC rates to your logged miles. Remember to apply the 45p rate only to the first 10,000 miles in the tax year, and the 25p rate to any miles beyond that threshold.
Compare with Employer Payments
Check your payslips to see how much your employer has already reimbursed you. Subtract this amount from your total HMRC entitlement to find your ‘shortfall’.
Submit a Tax Relief Claim
If you are an employee with a shortfall, claim tax relief via HMRC’s online P87 form or through your Self Assessment tax return. Self-employed individuals should claim this as a business expense.
Current HMRC Mileage Rates
A side-by-side summary of the Approved Mileage Allowance Payments (AMAP) for different vehicle types.
| Vehicle Type | First 10,000 Miles | Over 10,000 Miles | Key Notes |
|---|---|---|---|
| Cars & Vans | 45p per mile | 25p per mile | Applies to all fuel types, including electric and hybrid vehicles. |
| Motorcycles | 24p per mile | 24p per mile | Flat rate applies regardless of total annual mileage. |
| Bicycles | 20p per mile | 20p per mile | Flat rate applies regardless of total annual mileage. |
| Passenger Allowance | 5p per mile | 5p per mile | Additional tax-free amount per passenger for business journeys. |
Mileage Allowance FAQ
Answers to the most frequently asked questions about UK business mileage claims and HMRC rules.
For cars and vans, the HMRC Approved Mileage Allowance Payment (AMAP) rate is 45p per mile for the first 10,000 business miles in a tax year, and 25p per mile thereafter. For motorcycles, the rate is 24p per mile, and for bicycles, it is 20p per mile.
Yes, if your employer pays you less than the HMRC approved rates (or nothing at all) for using your personal vehicle for business travel, you can claim tax relief on the difference. Self-employed individuals can deduct these allowable expenses from their taxable profits.
No. HMRC applies the same Approved Mileage Allowance Payment (AMAP) rates to all cars and vans, regardless of whether they are petrol, diesel, hybrid, or fully electric. The rate remains 45p for the first 10,000 miles and 25p thereafter.
You must keep a detailed mileage log. This should include the date of the journey, the starting point and destination, the business purpose of the trip, and the number of business miles travelled. HMRC may request this evidence to support your claim.