If you drive your own car, motorbike or bicycle for work and your employer pays you less than the HMRC Approved Mileage Allowance Payment (AMAP) rate, you can claim Mileage Allowance Relief (MAR) — a tax relief on the shortfall. This calculator works out your AMAP entitlement, the MAR you can claim, and your actual tax saving at your income tax rate.
HMRC AMAP Rates 2025/26
- Car/van: 45p/mile (first 10,000 miles); 25p/mile (above 10,000)
- Motorcycle: 24p/mile (all miles)
- Bicycle: 20p/mile (all miles)
- Passenger supplement: +5p/mile per business passenger (employer only)
Mileage Allowance Relief Calculator
What is the Approved Mileage Allowance Payment?
The HMRC Approved Mileage Allowance Payment (AMAP) is the maximum rate an employer can pay for business mileage in an employee's own vehicle without creating a tax or NI liability. The rates are designed to cover the cost of fuel, oil, tyres, maintenance, and a portion of vehicle ownership costs. They have been unchanged for many years despite rising running costs.
For cars and vans, the rate is 45p per mile for the first 10,000 business miles in the tax year, falling to 25p per mile thereafter. The higher first-rate reflects fixed costs being spread over early mileage. For motorcycles the rate is a flat 24p, and for bicycles 20p, regardless of total miles.
What is Mileage Allowance Relief?
MAR is a tax relief claimed by employees who use their own vehicle for business journeys but are paid less than the AMAP rate by their employer — or receive nothing at all. The relief equals the shortfall between the AMAP entitlement and what was actually received. The tax saving is the relief amount multiplied by the employee's income tax rate.
For example: if you drove 8,000 business miles in your own car and your employer paid nothing, your AMAP entitlement is £3,600 (8,000 × 45p). Your MAR is £3,600. As a basic rate taxpayer, your tax saving is £720 (£3,600 × 20%).
What Counts as a Business Journey?
Business journeys are travel from one workplace to another, or to a temporary workplace (a site where you attend for no more than 24 months). Commuting between home and a permanent workplace does not qualify and is explicitly excluded from AMAP and MAR. Travel to a customer site, to a conference, to a different branch of your employer, or to a temporary project site generally qualifies.
HMRC may challenge claims where home is not genuinely a place of work or where the pattern of journeys suggests ordinary commuting. Keep a detailed mileage log to substantiate your claim if asked.
How to Claim Mileage Allowance Relief
If you file a Self Assessment return, claim MAR in the employment pages as an expense deduction. If you do not normally file a return, use form P87 which can be submitted online through your Government Gateway account or sent by post to HMRC. Claims can be made within four years of the end of the tax year in which the mileage was driven.
For 2025/26 claims, the deadline is 5 April 2030. For earlier years, act promptly as backdated claims cannot be extended beyond the four-year window.
Employer Overpayments: Taxable Excess
If your employer pays more per mile than the AMAP rate, the excess is treated as taxable income. It should be reported on your P11D form or through payrolled benefits. The excess is subject to income tax and employee Class 1 National Insurance. Employers must also pay employer Class 1 NI on the excess amount.
Many employers deliberately pay at or slightly below the AMAP rate to avoid creating a taxable event. If you receive above the AMAP rate, discuss the tax treatment with your employer's payroll team to ensure it is reported correctly.
AMAP Rates for Electric Vehicles
The same AMAP rates apply to electric cars and vans: 45p for the first 10,000 miles and 25p above. This is notable because EV running costs are lower than petrol or diesel, meaning the 45p rate may more than cover actual fuel costs alone. Separately, HMRC publishes an Advisory Electric Rate (AER) for company car users — this is a different figure (currently much lower) used for reimbursing fuel costs of employer-provided EVs, not for MAR purposes.
Frequently Asked Questions
MAR is tax relief available when an employer pays less than the HMRC AMAP rate for business miles driven in your own vehicle. You can claim tax relief on the shortfall at your income tax rate.
Cars and vans: 45p/mile (first 10,000 miles) then 25p/mile. Motorcycles: 24p/mile. Bicycles: 20p/mile. These rates have not changed since 2011.
Via Self Assessment (employment expenses section) if you file a return, or using form P87 (online or post) if you do not. You can claim for up to four previous tax years.
Yes. The threshold resets at the start of each tax year (6 April). High mileage in one year does not reduce your entitlement in the next.
Keep a mileage log with date, purpose, start and end locations, and miles driven for each business journey. Retain records for at least 6 years.
Yes. The same AMAP rates (45p/25p) apply to electric cars and vans. The Advisory Electric Rate is a separate concept used only for employer-provided company cars.
Yes. Self-employed sole traders can use the flat AMAP mileage rate instead of claiming actual vehicle costs. Once chosen for a vehicle, you must stick to this method for that vehicle.
The excess above the AMAP rate is taxable income reported on your P11D. You pay income tax and NI on the excess, and your employer pays employer NI.
Travel to temporary workplaces, client visits, or between different employer locations qualifies. Regular commuting between home and a permanent workplace does not qualify.
Employers can pay an extra 5p per mile per business passenger. This approved supplement is not taxable. Individual employees cannot claim this amount — only the driver's employer can pay it.
No. MAR only applies to employees using their own vehicle. Company cars, employer-provided vans, and hire cars arranged by the employer do not qualify.
Up to four previous tax years. For 2025/26, you can still claim back to 2021/22 until 5 April 2026. Claims for 2021/22 must be submitted by 5 April 2026.