The 45p/25p Rule (AMAPs)
HMRC sets Approved Mileage Allowance Payments (AMAPs) — the fixed amounts you can claim per business mile without generating a tax charge for the driver. The standard rate for cars and vans is 45p per mile for the first 10,000 miles in a tax year, then 25p per mile after that.
These rates apply to employees using their own vehicle for work AND to self-employed people claiming simplified expenses on their Self Assessment return. Employers can also use AMAP rates to pay staff tax-free mileage reimbursements.
Approved Mileage Allowance Payments 2026
Standard AMAP rates (from 6 April 2026)
- Cars & vans — 45p per mile (first 10,000 miles), 25p per mile (thereafter)
- Motorcycles — 24p per mile
- Bikes/e-bikes — 20p per mile (unchanged)
- Passengers — 5p per mile per passenger (company car or own car in a car share)
Multiplied across a typical 12,000 business mile year, an employee gets £5,500 tax-free (10,000 × 45p + 2,000 × 25p).
💡 These figures are “benchmark” rates HMRC updates in April each year. If your employer pays less than AMAP, you can claim tax relief on the shortfall. If they pay more, the extra is taxable.
Advisory Fuel Rates (For Company Car Drivers)
If you drive a company car, you can't use AMAPs. Instead, HMRC publishes quarterly Advisory Fuel Rates (AFRs) which tell you what you can claim from your employer for business fuel in a company car. FRs depend on the car's engine size and fuel type — reissued in March, June, September and December each year.
Current typical rates (quarterly)
- Petrol 1400cc or less — 12p/mile
- Petrol 1401–2000cc — 14p/mile
- Petrol over 2000cc — 20p/mile
- Diesel 1600cc or less — 11p/mile
- Diesel 1601–2000cc — 13p/mile
- Diesel over 2000cc — 17p/mile
- Electric — 3p/mile
Note: Advisory rates are reviewed quarterly and can change at short notice. Always check the latest HMRC table.
How to Claim Mileage if You're an Employee
- Record every business journey — date, start, end, business purpose, and mileage
- Compare what your employer pays against AMAP rates for your vehicle
- If underpaid, claim tax relief on the difference via your P87 form (under £2,500) or Self Assessment
- Tax relief is at your marginal rate — basic rate taxpayers save 20p per underpaid pound, higher rate 40p
⚠️ You can't claim for ordinary commuting — the journey between home and your normal workplace is never a business trip, even if you do work tasks on the way.
Simplified Expenses for the Self-Employed
Sole traders using cash basis accounting can elect for simplified expenses instead of working out actual vehicle costs (insurance, MOT, servicing, depreciation, etc.). With simplified expenses you simply multiply the number of business miles by the AMAP rate, and that becomes your allowable deduction.
💡 A self-employed courier driving 20,000 business miles in 2026 claims 10,000 × 45p + 10,000 × 25p = £7,000 — a sizeable deduction that usually beats manually adding up running costs.
What Counts as a Business Mile?
- Visiting clients, suppliers or customers
- Travel between two different work locations
- Trips to a temporary workplace (over 24 months is treated as permanent)
- Running errands essential to the business (e.g. banking)
- Training courses directly related to your job
Home-to-work journeys, school runs, and personal weekends away with “a bit of work” don't count.
Keeping Records for an HMRC Check
Even if you use simplified expenses, HMRC can ask to see your mileage log in a compliance check. Keep:
- A mileage log with routes and purposes
- Receipts for parking, tolls, and congestion charges (these are separate expenses)
- Vehicle finance and running cost records (if using actual costs instead)
🔴 Mileage claims must be submitted on time with your Self Assessment (normally by 31 January after the tax year ends). Back-claims for up to 4 years can be made if you've missed them.
Electric Cars & Salary Sacrifice
Some employers offer salary sacrifice car schemes where you give up salary in exchange for an EV. If the employer pays a separate mileage allowance, the AFR for electric cars currently sits at 3p/mile — so those free-company-leccy drivers typically get less reimbursement than petrol drivers.