Mileage Allowance & Tax Relief on Business Miles 2025-26

Q: Can I claim mileage if I use my own car for work?

Yes. If you use your own car for business journeys (not commuting to your regular workplace), you can claim tax relief on the difference between what your employer pays and the HMRC AMAP rate. The AMAP rate is 45p per mile for the first 10,000 business miles and 25p per mile thereafter. If your employer pays nothing, you can claim relief on the full AMAP amount via a P87 form or Self Assessment.

Q: What if my employer does not pay mileage?

If your employer pays nothing for business miles, you can claim Mileage Allowance Relief for the full AMAP amount — 45p per mile for the first 10,000 miles, 25p thereafter. For employees, this is claimed via a P87 form if you do not file Self Assessment, or via your Self Assessment return if you do. The relief reduces your taxable income, saving you 20% or 40% of the allowable amount depending on your tax rate.

Q: Are mileage allowances the same for electric cars?

Yes. The AMAP rates apply equally to electric cars, petrol, diesel, and hybrid vehicles — 45p per mile for the first 10,000 business miles and 25p thereafter. This is seen as somewhat unfair given that electric running costs are lower, but HMRC has not introduced separate EV mileage rates for employees using their own vehicle. Company car drivers using an employer-provided EV are instead reimbursed using the much lower Advisory Electric Rate (AER), currently 7p per mile.

If you drive your own car for work, HMRC allows you to receive or claim 45p per mile for the first 10,000 miles — tax-free. If your employer pays less, you can claim tax relief on the difference.

HMRC Approved Mileage Allowance Payments (AMAP) — car and van rates 2025-26

What Are Approved Mileage Allowance Payments?

HMRC's Approved Mileage Allowance Payments (AMAP) are the tax-free rates at which you can be reimbursed — or claim relief — for using your own vehicle for business travel. They are designed to cover the full running cost of a private car used for work, including fuel, wear and tear, insurance, and depreciation.

These rates have not changed since 2011, which means they are increasingly out of step with actual motoring costs — particularly for petrol and diesel drivers who have seen fuel prices rise significantly. Despite lobbying, HMRC has maintained the rates unchanged.

AMAP Rates 2025-26

Vehicle Type	First 10,000 Miles	Above 10,000 Miles
Cars and vans	45p per mile	25p per mile
Motorcycles	24p per mile	24p per mile
Bicycles	20p per mile	20p per mile

The 10,000-mile threshold resets at the start of each tax year (6 April). If you drive 8,000 business miles in one year and 12,000 the next, you receive 45p for all 8,000 miles in year one, and 45p for the first 10,000 then 25p for the remaining 2,000 in year two.

When You Can Claim Mileage Allowance Relief

Your employer pays the AMAP rate exactly: No action needed. The payment is tax-free with nothing to claim.

Your employer pays less than AMAP: The difference is Mileage Allowance Relief — you can claim tax relief on the shortfall. This reduces your taxable income by the shortfall amount, saving you 20% (basic rate) or 40% (higher rate) of the difference.

Your employer pays more than AMAP: The excess is a taxable benefit, reported on your P11D and subject to income tax.

Your employer pays nothing: You can claim relief on the full AMAP amount via a P87 form (for employees not required to file Self Assessment) or via your Self Assessment return.

Worked Example: Employer Pays 25p, AMAP is 45p

You drive 8,000 business miles in 2025-26. Your employer pays 25p per mile = £2,000.

HMRC AMAP allowance: 8,000 × 45p = £3,600
Amount received from employer: £2,000
Mileage Allowance Relief (shortfall): £3,600 − £2,000 = £1,600
Tax saving at basic rate (20%): £1,600 × 20% = £320
Tax saving at higher rate (40%): £1,600 × 40% = £640

The relief reduces your income tax liability by £320 or £640 depending on your tax rate. Claim via P87 (employees) or Self Assessment by 31 January following the tax year end.

What Counts as Business Mileage?

Counts as business mileage: travel between two workplaces; travel to visit a client, customer, or supplier; travel from your home to a temporary workplace (a site you attend for no more than 24 months).

Does NOT count: your ordinary commute to your regular, permanent workplace. Even if your commute is long, HMRC does not permit relief on travel between home and your normal place of work.

Company Car Drivers: A Different System

If your employer provides a company car, the AMAP system does not apply. Instead, you claim fuel reimbursement at the Advisory Fuel Rate (AFR), which varies by engine size and fuel type (e.g., 13p/mile for a 1400cc petrol car in 2025-26). The AFR is reviewed quarterly by HMRC and is set to cover fuel costs only — not the full running cost covered by AMAP.

Claiming for Previous Years

You can claim Mileage Allowance Relief for up to 4 tax years previously. For 2025-26 you can go back to 2021-22. Keep mileage logs and supporting evidence (dates, destinations, business purpose, odometer readings) — HMRC can ask for these if they query the claim.

Frequently Asked Questions

Can I claim mileage if I use my own car for work?

Yes. If you drive your own vehicle for business journeys (not your regular commute), you can receive or claim 45p per mile for the first 10,000 business miles per year. If your employer pays less, claim Mileage Allowance Relief on the shortfall via P87 or Self Assessment.

What if my employer does not pay mileage?

Claim the full AMAP amount as Mileage Allowance Relief. On 8,000 business miles with no employer payment: relief = 8,000 × 45p = £3,600 deducted from taxable income. For a basic-rate taxpayer that is a £720 tax saving.

Are mileage allowances the same for electric cars?

Yes. If you use your own electric car for business, the AMAP rates (45p/25p) apply identically. Company car EV drivers use the lower Advisory Electric Rate (7p/mile) for fuel-only reimbursement instead.