HMRC approved mileage rates for 2026/27
| Vehicle | First 10,000 business miles | Over 10,000 miles |
|---|---|---|
| Cars and vans | 55p | 25p |
| Motorcycles | 24p | 24p |
| Bicycles | 20p | 20p |
| Each passenger on business | 5p | 5p |
The car and van rate for the first 10,000 miles rose from 45p to 55p, backdated to 6 April 2026. It had not changed since 2011.
How the allowance works
When you use your own vehicle for work, your employer can pay you up to these rates without any tax or National Insurance. These payments are called approved mileage allowance payments (AMAP). Anything above the approved amount is taxable.
For example, 12,000 business miles in a car this tax year gives 10,000 × 55p + 2,000 × 25p = £6,000 tax-free.
If your employer pays less: mileage allowance relief
If your employer pays less than the approved rate, or nothing, you can claim tax relief on the difference. This is called mileage allowance relief. You do not get the difference itself, you get tax back on it at your own rate. If the approved amount is £6,000 and your employer paid £3,000, you can claim relief on £3,000, worth £600 to a basic-rate taxpayer.
You can claim online through your HMRC personal tax account if your claim is £2,500 or less, or through Self Assessment if it is more.
What counts as business mileage
Business journeys are trips you make for work, such as visiting clients or a temporary workplace. Your normal commute to a permanent workplace does not count. Keep a record of the date, start and end points, purpose and miles of every business journey.
Sources
- GOV.UK: Expenses and benefits, business travel mileage
- GOV.UK: Claim tax relief for job expenses (vehicles)
- ATT: Increased HMRC approved mileage rates announced
Rates and rules last checked 15 October 2026. These figures are a guide. For a decision that matters, confirm with the official source.