HMRC Mileage Rates 2025/26: What You Can Claim
A plain-English guide to the approved mileage allowance rates published by HMRC. For general information only — not professional financial advice.
1. What are AMAP rates?
AMAP stands for Approved Mileage Allowance Payments. These are the rates published by HMRC that you can use to calculate tax-free mileage payments for business journeys made in your own vehicle.
The idea is simple: instead of tracking every individual vehicle cost (fuel, insurance, servicing, depreciation, road tax, MOT), you multiply your business miles by a flat rate per mile. This is known as using simplified expenses for vehicles.
These rates apply to employees receiving mileage reimbursement from their employer, self-employed individuals using simplified expenses, and sole traders. The rates have remained unchanged since 2012, though HMRC reviews them periodically.
2. Current mileage rates at a glance
These are the HMRC approved mileage rates as published on gov.uk. Always verify current rates directly with HMRC.
| Vehicle type | First 10,000 miles | After 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 |
| 👤 Passengers (cars/vans) | 5p per mile per passenger | |
Note: Motorcycles and bicycles use a flat rate regardless of miles. The 10,000-mile threshold only applies to cars and vans, and is calculated per tax year (6 April to 5 April).
3. How the tiered rate for cars works
For cars and vans, the rate drops after 10,000 business miles in a single tax year. This means your first 10,000 miles are at the higher 45p rate, and everything beyond that is at 25p.
Example calculation
If you drove 14,000 business miles in the 2025/26 tax year:
- •First 10,000 miles × 45p = £4,500
- •Next 4,000 miles × 25p = £1,000
- •Total potential claim = £5,500
Use our mileage calculator to run your own numbers instantly.
Important: The 10,000-mile threshold is cumulative across the whole tax year. If you change jobs mid-year, the total across all employment still applies.
4. Passenger payments (5p per mile)
If you carry passengers in your car or van on business journeys, you may be able to claim an additional 5p per mile for each passenger. The key requirement is that the passengers must also be travelling for business purposes — for example, colleagues going to the same client meeting.
Example with passengers
A 50-mile business trip with 2 colleagues:
- •Vehicle: 50 miles × 45p = £22.50
- •Passengers: 50 miles × 5p × 2 = £5.00
- •Total potential claim = £27.50
Passenger payments do not apply to motorcycles or bicycles. Keep a record of who the passengers were and the business purpose of the journey.
5. What counts as business mileage?
Not every journey qualifies. Understanding the distinction between business travel and commuting is critical, as HMRC may challenge claims for the wrong type of journey.
✓ Generally qualifies
- Travel to client or customer sites
- Meetings at locations away from your base
- Travel between different work locations
- Trips to suppliers or trade events
- Travel to temporary workplaces
- Site visits and inspections
✗ Typically does not qualify
- Home to your regular, permanent workplace
- Personal errands during the day
- Social trips combined with business
- Journeys where business is not the main purpose
Special case — working from home: If your home is your only base of business (no separate office), HMRC may consider travel to client sites as business mileage. However, if you also have a regular office, the journey between home and that office is still commuting. The rules around this can be nuanced — consult a tax professional if you're unsure.
6. Mileage rates vs actual costs
As a self-employed individual, you generally have two options for claiming vehicle expenses. It's important to understand the trade-offs, as you typically cannot switch methods for the same vehicle once you've started.
Mileage rates (simplified)
- ✓Simple to calculate — just track miles
- ✓Less record-keeping required
- ✓Often better for low-mileage vehicles
- ✗May under-claim if actual costs are high
- ✗Cannot claim capital allowances on the vehicle
Actual costs
- ✓May result in a larger claim for expensive vehicles
- ✓Can claim capital allowances on the vehicle
- ✓Better for high-mileage, high-cost vehicles
- ✗More complex — need all receipts
- ✗Must calculate business-use proportion
If you're unsure which method suits you, consult an accountant. The right choice depends on your vehicle, mileage, and running costs. You can check the mileage option quickly with our mileage calculator.
7. Keeping a mileage log
HMRC recommends maintaining a contemporaneous mileage log — in other words, recording journeys as they happen rather than reconstructing them later. A good mileage log should include:
- 1.Date of the journey
- 2.Start and end location (or destination)
- 3.Business purpose — why the journey was made
- 4.Miles travelled (odometer readings or GPS-based tracking)
- 5.Passengers carried (names and business reason, if claiming passenger payments)
You can use a simple spreadsheet, a dedicated mileage tracking app, or even a notebook. The key is consistency and accuracy. Retain your log for at least 5 years after the relevant tax year's filing deadline.
8. Who can claim?
HMRC mileage rates apply to different groups in slightly different ways:
Self-employed & sole traders
Can use simplified expenses (AMAP rates) when completing their Self Assessment. This is claimed through the self-employment section of the tax return. Use our mileage expense checker to explore your situation.
Employees
Employers can reimburse employees up to the AMAP rates tax-free. If your employer pays less than the approved rate (or nothing at all), you may be able to claim Mileage Allowance Relief (MAR) on the difference via Self Assessment or form P87.
Limited company directors
If you use your personal vehicle for business, your company can reimburse you at the AMAP rates. This is a business expense for the company and tax-free income for you (up to the approved rates). Check our fuel expense checker for more details.
Frequently asked questions
What are the HMRC mileage rates for 2025/26?
According to HMRC, the Approved Mileage Allowance Payment (AMAP) rates are: 45p per mile for cars and vans (first 10,000 business miles), then 25p per mile. Motorcycles: 24p per mile. Bicycles: 20p per mile. An additional 5p per mile may be claimed for each business passenger carried. Always verify current rates on gov.uk.
Can I claim mileage if I use my personal car for business?
Generally, if you use your personal vehicle for qualifying business journeys, you may be able to claim mileage at HMRC approved rates. These rates are intended to cover fuel, insurance, road tax, MOT, servicing, and depreciation. Commuting to your regular workplace typically does not qualify.
What is the difference between mileage rates and actual costs?
Mileage rates use a flat per-mile amount (e.g. 45p) to simplify calculations. Actual costs involve tracking real expenses like fuel, insurance, and repairs, then claiming the business proportion. You typically cannot switch between methods for the same vehicle. Seek professional advice on which method suits you.
Do I need to keep a mileage log?
HMRC recommends keeping a mileage log recording the date, destination, purpose of journey, and miles travelled. You should also note any passengers carried for business purposes. HMRC may request this evidence if they enquire into your tax return.
Can employees claim mileage from their employer?
Employees may receive mileage reimbursement from their employer up to HMRC AMAP rates tax-free. If your employer pays less than these rates, you may be able to claim Mileage Allowance Relief (MAR) on the difference through your tax return. Check with HMRC or a tax professional.
Does commuting count as business mileage?
No, commuting from home to your regular, permanent workplace is not business mileage. Business mileage generally covers travel to client sites, temporary workplaces, meetings away from your normal base, and travel between different work locations.
9. Important disclaimer
This article is for general information and educational purposes only. It does not constitute professional tax, legal, financial, or accounting advice of any kind. The information is based on our understanding of HMRC published guidance at the time of writing, which may have changed. We make no representations or warranties about the accuracy, completeness, or suitability of this information for your circumstances. Always consult a qualified accountant or tax advisor before making financial decisions. We accept no liability for any loss, damage, or consequences arising from reliance on this content.
Official HMRC references
🔗Business travel mileage: rules for tax
Official HMRC guidance on approved mileage allowance payments and rules.
Calculate your mileage
Use our free tool to estimate potential mileage allowance based on HMRC rates.