HMRC Mileage Rates 2026/27: Cars, Vans, Motorcycles

The HMRC approved mileage rates, known as Approved Mileage Allowance Payments or AMAPs, are the rates at which you can be paid tax free for using your own vehicle for business travel. If your employer pays you less than these rates, you can claim tax relief on the difference. This page sets out the current rates and explains how to claim.

Important update: the rate for cars and vans increased from 45p to 55p per mile (for the first 10,000 business miles) from 6 April 2026. The change was announced on 21 May 2026 and applies for the 2026/27 tax year onwards.

Approved mileage rates for 2026/27

Vehicle	First 10,000 business miles	Over 10,000 miles
Cars and vans	55p per mile	25p per mile
Motorcycles	24p per mile	24p per mile
Bicycles	20p per mile	20p per mile

Cars and vans are paid 55p per mile for the first 10,000 business miles in the tax year, then 25p per mile after that. Motorcycles are 24p per mile and bicycles 20p per mile, with no change after 10,000 miles. There is also a passenger payment of 5p per mile for each fellow employee you carry on the same business journey, but this can only be received if your employer chooses to pay it.

What counts as business mileage

Business mileage is travel you have to do for work, such as driving to a temporary workplace or between sites. It does not include your ordinary commute from home to a permanent workplace. Only qualifying business miles count towards the approved rates.

How to claim mileage tax relief

If your employer pays you less than the approved rate, or nothing at all, you can claim Mileage Allowance Relief (MAR) on the shortfall. You work out the approved amount (your business miles multiplied by the rate), subtract anything your employer paid you, and the difference is the amount you get tax relief on at your tax rate.

For example, a basic rate taxpayer who drives 8,000 business miles in their own car and is paid nothing by their employer has an approved amount of 8,000 × 55p = £4,400. They can claim tax relief on £4,400, worth £880 at 20 percent. If their employer had paid 30p per mile (£2,400), they could claim relief on the £2,000 shortfall instead.

Work out your own figure with our mileage claim calculator, or read the full work mileage tax rebate guide.

Frequently asked questions

What is the HMRC mileage rate for 2026/27?

For cars and vans it is 55p per mile for the first 10,000 business miles and 25p per mile after that. Motorcycles are 24p and bicycles 20p per mile.

When did the mileage rate change to 55p?

The car and van rate rose from 45p to 55p per mile from 6 April 2026, announced on 21 May 2026, for the 2026/27 tax year onwards.

Can I claim if my employer pays me some mileage?

Yes. If your employer pays less than the approved rate, you can claim tax relief on the difference between the approved amount and what you were paid.

Does my commute count?

No. Ordinary commuting from home to a permanent workplace is not business mileage. Travel to a temporary workplace usually is.

Claim the mileage relief you are owed

Check what you are owed with TaxPro and we will work out your mileage relief for every eligible year, on a no win, no fee basis.