Mileage allowance (AMAP) calculator
Using a private car for business travel qualifies for Approved Mileage Allowance Payments of 55p a mile for the first 10,000 miles in the tax year, then 25p a mile after that, under gov.uk's business travel mileage rules. Where an employer pays less than these rates, the shortfall can be claimed back as tax relief.
How do the allowance and the relief fit together?
The Approved Mileage Allowance Payments set the amount an employer can reimburse tax-free for using a private vehicle: 55p a mile for the first 10,000 business miles, then 25p, as published on gov.uk. That is the entitlement. If the employer pays the full rate, no further claim is needed. If the employer pays less, or nothing, the gap between the entitlement and the amount received is Mileage Allowance Relief, which can be claimed back at the individual's own tax rate. The relief is not the whole shortfall; it is the tax on the shortfall.
What would I pay in a worked example?
Take a driver covering 12,000 business miles where the employer pays 45p a mile. The AMAP entitlement is 10,000 miles at 55p plus 2,000 miles at 25p, which is £6,000. The employer paid £5,400, so the shortfall is £600. A higher-rate taxpayer could claim back 40% of that, £240. A basic-rate taxpayer on the same figures could claim £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.
How do the allowance and the relief fit together?
The Approved Mileage Allowance Payments set the tax-free entitlement: 55p a mile for the first 10,000 business miles, then 25p. If an employer pays that full rate, no further claim is needed. If an employer pays less, or nothing, the gap between the entitlement and the amount received is Mileage Allowance Relief, claimed back at the individual's own tax rate. The relief covers the tax on the shortfall, not the whole shortfall itself.
What would I pay in a worked example?
Driving 12,000 business miles with an employer paying 45p a mile gives an AMAP entitlement of 10,000 miles at 55p plus 2,000 miles at 25p, totalling £6,000. The employer paid £5,400, leaving a shortfall of £600. A higher-rate taxpayer could claim back 40% of that, £240, while a basic-rate taxpayer on the same figures could claim £120.
Sources & Rate Verification
Rates verified against official statutory guidance on 6 September 2026.