From April 2026 the HMRC approved mileage rate for cars and vans rose to 55p per mile for the first 10,000 business miles — the first increase since 2011. Miles above 10,000 are paid at 25p per mile. Enter your business miles below to see your total tax-free allowance and the tax relief you can claim.
Tax-free amount & relief
When you use your own car, van, motorcycle or bicycle for business travel, HMRC sets the maximum amount you can receive tax-free per mile — the Approved Mileage Allowance Payment (AMAP). If your employer pays you less than the AMAP rate, or nothing at all, you can claim tax relief on the shortfall.
| Vehicle | First 10,000 miles | After 10,000 miles |
|---|---|---|
| Car or van | 55p | 25p |
| Motorcycle | 24p (flat rate, no split) | |
| Bicycle | 20p (flat rate, no split) | |
The car/van rate increased from 45p to 55p on 6 April 2026 — the first AMAP change since 2011. The increase reflects the higher cost of running a vehicle. Motorcycle and bicycle rates are unchanged.
Suppose you drive 8,000 business miles in your car and your employer pays you nothing:
If your employer pays 30p per mile, the shortfall is 8,000 x (55p − 30p) = £2,000, and your relief at 20% is £400.
Employees: If you complete a Self Assessment return, add the mileage shortfall as an employment expense. If not, use HMRC form P87 online. You need to keep a record of each business journey — date, destination, purpose and miles.
Self-employed: You can choose between claiming actual vehicle costs or using the simplified AMAP rates. Once you pick a method for a vehicle, you must stick with it for that vehicle's lifetime. Most self-employed workers find the 55p rate simpler and often more generous, especially in the early years. The self-employed tax calculator models your overall tax position.
From 6 April 2026 the approved rate for cars and vans is 55p per mile for the first 10,000 business miles and 25p per mile after that. This is an increase from the previous 45p rate — the first change since 2011.
If your employer pays you less than the AMAP rate — or nothing — you can claim tax relief on the shortfall through Self Assessment or by submitting form P87 to HMRC. You claim relief at your marginal tax rate (20% or 40%).
Motorcycles are 24p per mile with no 10,000-mile split. Bicycles are 20p per mile. These rates did not change in 2026/27.
Yes. Self-employed individuals can use the simplified mileage expenses method and claim 55p per mile for the first 10,000 business miles and 25p after, instead of claiming actual vehicle costs. Once you choose a method for a vehicle you must stick with it.
No. The AMAP rate covers business miles only — journeys made as part of your work. Your regular commute between home and your normal workplace does not count. Temporary workplace journeys can qualify if they meet HMRC's definition.
