Business Mileage Claims
By Mustafa Bilgic · Updated 24 August 2026
HMRC's approved mileage allowance payments (AMAPs) let you claim 45p per mile for the first 10,000 business miles in a tax year, dropping to 25p per mile after that. These rates apply whether you drive a petrol, diesel, or electric car, and they cover fuel, insurance, wear and tear, and servicing in a single flat rate. Use our mileage allowance calculator to work out your total claim for the year.
The 45p/25p rates have remained unchanged for years. The calculator applies them to your annual mileage so you can see the claim value instantly.
Who Can Claim and at What Rate
Employees using their own vehicle for business journeys can receive up to 45p per mile tax-free for the first 10,000 miles in the tax year, then 25p per mile for every mile after that. If your employer pays you less than these rates -- or nothing at all -- you can claim Mileage Allowance Relief (MAR) on the shortfall through your tax return or by contacting HMRC directly.
Self-employed sole traders can also use the AMAP rates instead of claiming actual vehicle costs. Once you choose the simplified mileage method for a vehicle, you must stick with it for as long as you use that vehicle in your business. You cannot switch between actual costs and AMAP rates year to year for the same car. The 10,000-mile threshold resets each tax year on 6 April.
What Counts as a Business Mile
Your commute between home and your permanent workplace does not qualify. Business miles are journeys to temporary workplaces, client sites, meetings away from your usual office, or trips between two business locations. If you work from home and that is your permanent workplace, travel to a client's premises does qualify. The distinction matters, and HMRC is specific about it.
Employees who visit multiple sites on the same day can claim each leg of the journey that is not the commute to or from their permanent workplace. For self-employed workers, the same principle applies: travel between your base and a client counts, but travel that is essentially commuting does not. If you are unsure whether a particular journey qualifies, keep a record anyway -- your accountant can assess it when you file. Our mileage allowance calculator totals your qualifying miles and applies the correct rate automatically.
Record-Keeping That Survives an HMRC Check
HMRC expects a contemporaneous log of every business journey. At a minimum, record the date, start and end points, purpose of the trip, and miles driven. A spreadsheet works. A mileage-tracking app works better because it timestamps entries and captures GPS data, which is harder to dispute.
If you claim mileage without adequate records and HMRC opens an enquiry, the burden of proof is on you. Estimations and round numbers attract scrutiny. The stronger your log, the faster the enquiry closes. HMRC can go back up to four years for a routine check, or longer if they suspect careless or deliberate errors. Keeping clean records is cheaper than hiring a tax adviser to defend a claim after the fact.
Passengers, Bikes, and Motorcycles
If you carry a fellow employee as a passenger on a business journey, you can claim an additional 5p per mile for each passenger. The passenger does not claim separately -- the driver picks up the allowance. This rate has not changed in years and applies regardless of vehicle type.
Motorcycles attract a flat 24p per mile with no threshold split. Bicycles qualify at 20p per mile, though few employers pay this. If your employer does not reimburse the full approved rate for any vehicle type, the shortfall is eligible for MAR. Claiming is straightforward -- a P87 form for simple cases, or the employment section of your self-assessment return if you already file one. This page is for information only and does not constitute tax advice.
Not tax advice -- speak to your accountant.
Frequently asked questions
Do HMRC mileage rates apply to electric cars?
Yes. The 45p/25p approved mileage rates apply to all cars regardless of fuel type, including fully electric and hybrid vehicles. HMRC does not differentiate by power source for AMAP purposes.
Can I claim mileage and actual fuel costs?
No. The AMAP rate is designed to cover all running costs including fuel. You cannot claim the mileage allowance and then also claim fuel, servicing, or insurance separately for the same vehicle.
What if my employer pays more than the HMRC rate?
Any amount above the approved rate is treated as earnings and is subject to income tax and National Insurance. Your employer should report the excess through payroll.
How do I claim mileage allowance relief?
If you do not file a self-assessment return, use form P87 to claim from HMRC directly. If you already file a return, include the claim in the employment section. Either route requires a record of your business miles and the amount your employer paid you.