Income Tax & PAYE

Mileage Allowance

Tax-free mileage rates you can claim for using your own vehicle for business travel.

Definition

HMRC publishes approved mileage allowance payments (AMAPs) that allow employers to pay you tax-free for using your personal vehicle for business travel. For 2026/27, the rates are 55p per mile for the first 10,000 business miles in a tax year for cars and vans and 25p thereafter, plus 24p per mile for motorcycles and 20p per mile for bicycles. If your employer pays less than the approved rate, you may be able to claim tax relief on the shortfall.

Why it matters

It is a common and valuable tax relief for anyone who uses their personal car for work.
Employees can claim tax relief if their employer pays below the HMRC rate.

Common use cases

Claiming business mileage from employer
Tax relief for underpaid mileage
Self-employed mileage deduction

Last reviewed: 2026 · Tax year: 2026/27Found a mistake? Let us know

Related terms

Benefit in Kind (BIK)Self Assessment

Disclaimer

This definition is for informational purposes only and does not constitute tax, legal, or financial advice. Rules may change and outcomes depend on your circumstances.

Public resources and UK tax glossary sources

These GOV.UK and HMRC sources provide the official context for this glossary entry. The definition is educational and does not determine your individual tax position.

GOV.UK — Mileage allowance

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