Mileage allowance (AMAP) calculator
If you use your own car for work, the tax-free rate is 55p a mile for the first 10,000 business miles, then 25p. If your employer pays less, the shortfall is claimable as tax relief. This works out both.
How the allowance and the relief fit together
The Approved Mileage Allowance Payments set the amount your employer can reimburse tax-free for using your own vehicle: 55p a mile for the first 10,000 business miles, then 25p. That is the entitlement. If your employer pays the full rate, there is nothing more to do. If they pay less, or nothing, the gap between the entitlement and what you received is Mileage Allowance Relief, which you claim back at your own tax rate. The relief is not the whole shortfall, it is the tax on the shortfall.
Worked example
Suppose you drive 12,000 business miles and your employer pays 45p a mile. Your AMAP entitlement is 10,000 at 55p plus 2,000 at 25p, which is £6,000. Your employer paid £5,400, so the shortfall is £600. As a higher-rate taxpayer you get 40% of that back, £240. A basic-rate taxpayer on the same figures would get £120.
Common questions
What are the AMAP mileage rates?
For cars and vans the Approved Mileage Allowance Payments are 55p a mile for the first 10,000 business miles in the tax year, then 25p a mile after that. Your employer can pay up to these rates tax-free. Motorcycles are 24p and bicycles 20p throughout.
Did the mileage rate go up to 55p?
Yes. The gov.uk guidance confirms the car and van rate for the first 10,000 miles rose from 45p to 55p from 6 April 2026, so it is 55p for 2026/27. The 25p rate above 10,000 miles is unchanged. The old 45p rate had applied since 2011.
What if my employer pays less than the AMAP rate?
You can claim tax relief on the shortfall. The difference between the AMAP entitlement and what your employer actually paid is called Mileage Allowance Relief, and you get it back at your marginal tax rate. So a £600 shortfall is worth £120 to a basic-rate taxpayer or £240 to a higher-rate taxpayer.
What if my employer pays more than the AMAP rate?
The excess above the AMAP rate is treated as taxable pay. Your employer should report it, and you pay income tax and National Insurance on the amount over the approved rate. There is no relief to claim in that case.
How do I actually claim the relief?
If the claim is £2,500 or less you can use form P87 or your Personal Tax Account. Above that you claim through Self Assessment. Keep a mileage log with dates, journeys and business miles, because HMRC can ask to see it.
Can I claim for commuting to my normal workplace?
No. Ordinary commuting to your permanent workplace does not count as business mileage. Only journeys made for work, such as visiting clients or a temporary workplace, qualify for the allowance and the relief.