HMRC Mileage Rates 2026/27
The complete guide to HMRC approved mileage rates for business travel — how much you can claim, who can claim it, and what records HMRC requires you to keep.
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| Vehicle | First 10,000 miles | Over 10,000 miles |
|---|---|---|
| Car or van | 45p per mile | 25p per mile |
| Motorcycle | 24p per mile | 24p per mile |
| Bicycle | 20p per mile | 20p per mile |
These rates have been unchanged since 2011. The 10,000 mile threshold applies only to cars and vans. Motorcycles and bicycles use a flat rate for all miles with no threshold.
What are HMRC approved mileage rates?
HMRC approved mileage rates — also called Approved Mileage Allowance Payments (AMAPs) — are the government-set rates at which you can be reimbursed for using your own vehicle for business travel without paying tax on the payment.
If your employer pays you at or below the AMAP rate, the payment is tax-free. If they pay you more than the AMAP rate, the excess is taxable as income. If they pay you less — or nothing — you can claim tax relief on the difference through Self Assessment or a P87 form.
Sole traders and self-employed people use these rates to calculate the mileage element of their allowable business expenses on their Self Assessment tax return.
The 10,000 mile threshold explained
For cars and vans, HMRC applies two different rates depending on how many business miles you have driven in the current tax year.
The first 10,000 business miles in a tax year are reimbursed at 45p per mile. Every mile above 10,000 is reimbursed at the lower rate of 25p per mile.
The threshold resets every 6 April at the start of the new tax year. Miles from the previous year do not carry over.
Example: 12,000 business miles in 2026/27
First 10,000 miles at 45p = £4,500
Remaining 2,000 miles at 25p = £500
Total reimbursement = £5,000
If you drive close to the threshold, it is worth tracking your miles carefully throughout the year so you know exactly when the lower rate kicks in.
Our mileage calculator automatically splits your claim across both rates based on your miles already driven this year. Calculate my mileage claim →
Who can claim mileage?
Employees
Employees can claim mileage reimbursement from their employer at the AMAP rate for business travel in their own vehicle. If your employer pays less than the AMAP rate, or does not reimburse you at all, you can claim Mileage Allowance Relief (MAR) on the difference through your tax return or a P87 form.
Sole traders
If you are self-employed and run your business as a sole trader, you can use HMRC approved mileage rates to calculate the motor expense element of your Self Assessment tax return. This is known as the simplified expenses method.
You cannot use simplified expenses if you have previously claimed capital allowances on the same vehicle. Once you choose simplified expenses for a vehicle you must continue using it for the life of that vehicle.
Limited company directors
If you use your personal vehicle for business travel and your company reimburses you, the company can pay you up to the AMAP rate tax-free. The company can claim the mileage payment as a business expense, reducing its Corporation Tax bill.
What counts as business mileage?
Business mileage must be wholly and exclusively for business purposes. The following trips qualify:
- Travel to a client site or temporary workplace
- Travel to a business meeting away from your regular place of work
- Travel between two places of work
- Travel to collect business supplies or equipment
The following do not qualify:
- Commuting from home to your regular, permanent place of work
- Personal journeys
- Any trip with a personal element, even if business was the main purpose
Home can count as a place of work if you genuinely work from home. If you are a freelancer or contractor with a home office, travel from home to a client site counts as business mileage.
What records do you need to keep?
You do not need to keep fuel receipts to use HMRC approved mileage rates. The rate is designed to cover all running costs including fuel, oil, tyres, servicing and insurance.
You do need to keep a mileage log for each business trip. HMRC requires you to record:
- The date of the journey
- The start and end points (addresses)
- The business purpose of the trip
- The number of miles driven
HMRC can ask to see your mileage records during an enquiry. Records should be kept for at least five years after the relevant tax year.
Passenger payments
If you carry a fellow employee as a passenger on a business journey, you can claim an additional 5p per mile per passenger on top of your standard mileage rate.
Example: 100-mile business trip, two passengers
Standard rate: 100 miles × 45p = £45.00
Passenger payments: 2 passengers × 100 miles × 5p = £10.00
Total claimable: £55.00
Advisory fuel rates
Advisory fuel rates are different from approved mileage rates. They apply only when an employer provides a company car and needs to reimburse an employee for fuel costs, or when an employee needs to repay the cost of personal fuel in a company car.
If you drive your own vehicle, advisory fuel rates do not apply to you — use the approved mileage rates instead.
Frequently asked questions
What is the HMRC mileage rate for 2026/27?
The HMRC approved mileage rate for cars and vans is 45p per mile for the first 10,000 business miles in the tax year, then 25p per mile thereafter. Motorcycles are reimbursed at 24p per mile and bicycles at 20p per mile for all miles. These rates have been unchanged since 2011.
Has the 45p mileage rate changed for 2026/27?
No. The HMRC approved mileage rate has remained at 45p per mile for the first 10,000 miles and 25p per mile thereafter since 2011. HMRC reviews the rates periodically but has not changed them.
Can I claim mileage if I work from home?
Yes. If your home is a genuine place of work — for example you are a freelancer or contractor with a home office — then travel from home to a client site or temporary workplace counts as business mileage and can be claimed at the approved rates.
Do I need fuel receipts to claim mileage?
No. The approved mileage rate covers all vehicle running costs including fuel, so you do not need fuel receipts. You do need to keep a mileage log recording the date, start and end points, business purpose and miles for each trip.
What is the difference between approved mileage rates and advisory fuel rates?
Approved mileage rates apply when you use your own vehicle for business travel. Advisory fuel rates apply only to company cars — when an employer reimburses fuel costs or an employee repays personal fuel in a company vehicle.
Can my limited company pay me mileage?
Yes. If you use your personal vehicle for business travel, your limited company can reimburse you at up to the HMRC approved rate tax-free. The company claims the payment as a business expense. Keep a mileage log to support the claim.
This guide is for general information only and does not constitute tax advice. Always verify current HMRC rates and your eligibility to claim at gov.uk or consult a qualified accountant or tax adviser.