Mileage Allowance Calculator (HMRC)

Approved Mileage Allowance Payments cover four vehicle categories, each with a fixed per-mile rate set by HMRC. Cars and vans receive 45p per mile up to 10,000 miles and 25p thereafter. Motorcycles are paid at a flat 24p per mile regardless of distance. Bicycles attract 20p per mile with no tiered threshold. These rates apply for the entire 2026/27 tax year.

Passenger payments add a further 5p per mile for each fellow employee carried on a qualifying business journey. This passenger supplement applies to car and van journeys only and is received tax-free by the driver. The passenger does not need to claim separately provided they travel in the same vehicle on the same qualifying trip.

Self-employed individuals cannot use AMAP rates for tax deductions. Instead, they must choose between claiming actual vehicle running costs (fuel, insurance, repairs, depreciation) with appropriate business-use proportion, or using HMRC's simplified flat-rate mileage expenses. Once a method is chosen for a particular vehicle, it must be used for the vehicle's lifetime in the business.

HMRC Approved Mileage Allowance Payments (AMAP) rates 2026/27. Cars and vans: 45p/mile first 10,000 business miles, 25p/mile thereafter. Motorcycles: 24p/mile. Bicycles: 20p/mile. Passenger payments: 5p/mile per additional passenger (also business). Rates unchanged since 2011 despite inflation — significantly undercompensates actual costs at 2026 fuel prices. Employers can pay LESS than AMAP rates but employee can claim tax relief on the difference.

What counts as 'business mileage'. Travel between offices (not home-to-office which is COMMUTE — NOT business mileage). Travel to client sites, training, meetings (excluding regular work location). Detours from commute for business: only the extra mileage above normal commute counts. Temporary workplace exception: assignments under 24 months to a single site count as business mileage if it's not your normal base.

How to claim mileage. If employer pays AMAP rate or less: no further claim needed (already tax-relieved). If employer pays more than AMAP: excess is taxable as 'benefit in kind' through P11D. If employer pays less than AMAP OR pays nothing for business mileage: claim relief on the shortfall via P87 form or Self Assessment. Self-employed: claim AMAP rates as business expense (simplified expenses method) OR claim actual costs proportional to business use.

Electric vehicle and pure-EV mileage rates. EVs use the same AMAP rates as petrol/diesel — 45p/mile first 10,000. Plus separate 'Advisory Electricity Rate' (AER) for company-car electricity reimbursement: 8p/mile from December 2024. EV salary sacrifice schemes: employees usually claim AER (8p/mile) or HMRC's separate scale rates for personal recharging. Most efficient: AMAP at 45p/mile for first 10k business miles vs actual ~2p/mile EV running cost = massive surplus.