UK Mileage Tax Relief 2026/27
Work out your HMRC mileage tax relief claim at 55p (first 10,000 miles) and 25p above. Cars, vans, motorcycles, bicycles - business miles, 2026/27 rates.
HMRC Approved Mileage Allowance Payments: 55p per mile for the first 10,000 business miles, 25p above; 24p motorcycles, 20p bicycles. The 55p rate applies from 6 April 2026 - the first rise since 2011. If your employer pays less, claim Income Tax relief on the shortfall.
Your business travel
Tax relief you can claim
£600
On a £3,000 shortfall — claim through HMRC.
- HMRC entitlement
- £6,000
- Employer paid
- £3,000
- Shortfall (or excess)
- £3,000
- Relief (or extra tax)
- £600
Claim via P87 online (Personal Tax Account) if total expenses claim < £2,500; Self Assessment otherwise.
How the calculation works
- HMRC entitlement = first 10,000 miles × 55p + remaining × 25p (car/van). Motorcycles: miles × 24p flat. Bicycles: miles × 20p flat.
- Employer paid = miles × pence-per-mile your employer reimburses.
- Shortfall = entitlement − employer paid. If positive, you can claim Income Tax relief on it at your marginal rate. If negative, the excess is taxable earnings on your P11D.
- Relief = shortfall × your marginal Income Tax rate (20% / 40% / 45%).
Related calculators
Self-Employed Tax →
Sole traders claim simplified expenses at the same 55p / 25p. See full self-employed Income Tax + NI.
Company Car BIK →
Using a company car instead? HMRC AFR (lower pence rates) applies, not AMR. Compare the two.
Salary Take-Home →
Tax relief on mileage lands in your next tax-code adjustment. See the take-home uplift.
Tax Code Explainer →
Claiming relief bumps your tax-code number. See how the new code reads.
Sources
- HMRC — Business travel mileage: rules for tax (rates in force since April 2011, retrieved 20 April 2026)
- HMRC — Claim tax relief on business mileage (P87 process)
- HMRC — Travel mileage and fuel rates and allowances (current)
Related calculators
Other UK tax calculators that pair with the Mileage.
Frequently asked questions
What are the HMRC mileage rates?
HMRC Approved Mileage Allowance Payments (AMR): 55p per mile for the first 10,000 business miles in a tax year (car or van), 25p per mile above 10,000; 24p per mile for motorcycles; 20p per mile for bicycles. The cars/vans first-10k rate rose from 45p to 55p on 6 April 2026 - the first rise since 2011. These are the ceiling for what employers can reimburse tax-free - payments above count as taxable earnings.
What counts as a business mile?
Travel from your normal workplace to a temporary workplace, or between two workplaces in the course of your job. The commute between home and your permanent workplace is NOT business travel and CANNOT be claimed. If you're a home-based worker your home can be your permanent workplace - then travel to any client site is business mileage.
What if my employer pays less than 55p/25p?
You can claim Income Tax relief (not a cash reimbursement) on the shortfall. Multiply the shortfall by your marginal Income Tax rate (20%, 40%, or 45%). Example: 12,000 miles at 25p from employer = £3,000; AMR entitlement = £6,000; shortfall £3,000; relief at 20% = £600 / at 40% = £1,200.
How do I claim the tax relief?
If total claim is under £2,500 per year: fill in form P87 online via your Personal Tax Account, or write to HMRC. If over £2,500: use Self Assessment. Keep mileage records - HMRC can ask for proof up to 4 years after the end of the tax year. Fuel receipts are helpful but a mileage log is the primary evidence.
What if my employer pays more than 55p?
The excess is taxable as earnings. Example: employer pays 60p/mile for 8,000 miles = £4,800; AMR = £4,400; excess £400 is added to your taxable income. Most employers cap payments at AMR to avoid this. If yours pays more it should appear on your P11D.
Can I claim mileage if I use a company car?
Different rules. Company-car drivers use HMRC Advisory Fuel Rates (AFR), pence-per-mile figures set quarterly by HMRC that cover only the fuel cost (not wear and tear, since the employer owns the car). AFR is much lower than AMAP: from 1 September 2026 it runs 14p to 27p for petrol by engine size, 15p to 22p for diesel, and 7p or 15p for an electric car depending on whether it is charged at home or publicly. This calculator is for personal-vehicle-for-business-use.
Can I claim for carrying passengers on business trips?
Yes - there's a separate Passenger Payment scheme: employers can pay an extra 5p per mile tax-free for each fellow employee you carry on a business journey. The passenger must also be on business travel. You cannot claim tax relief on the passenger payment if your employer does not pay it - AMR only covers the driver portion.
Does this apply to self-employed people?
Yes - sole traders can use the same AMR rates as a simplified expense deduction (55p/25p/24p/20p). Alternative: track actual motoring costs (fuel, servicing, insurance, depreciation) and claim the business-use proportion. You must pick one method per vehicle per year - you can't mix.