What Are Approved Mileage Allowance Payments?
Approved Mileage Allowance Payments (AMAPs) are the rates set by HMRC that employers can pay employees for using their own vehicles for business travel — tax and NI free. Employers who pay up to the AMAP rate have no reporting obligations. Employees who receive less than the AMAP rate can claim Mileage Allowance Relief.
AMAPs apply to employees, company directors, and self-employed people. They cover the use of a privately owned vehicle — not a company car (which uses separate Advisory Fuel Rates).
AMAP Rates 2026/27
| Vehicle | First 10,000 miles | Over 10,000 miles |
|---|---|---|
| Car or van | 45p/mile | 25p/mile |
| Motorcycle | 24p/mile | 24p/mile |
| Bicycle | 20p/mile | 20p/mile |
The 10,000-mile threshold is per tax year (6 April to 5 April), not per job or per car. If you use different vehicles, the total mileage across all vehicles determines when you drop to the lower rate.
The AMAP rates have been unchanged since 2011 — despite significant increases in fuel prices. Many argue the rates don't fully reflect modern running costs, particularly at current fuel prices.
Who Can Claim?
Employees
Employees who use their own car for business can be reimbursed at up to the AMAP rate by their employer — tax and NI free. If the employer pays more than the AMAP rate, the excess is taxable as salary. If the employer pays less, the employee can claim Mileage Allowance Relief on the shortfall.
Self-Employed
Sole traders and partners can deduct mileage at the AMAP rate as a business expense — instead of claiming actual vehicle running costs. You must choose one method for each vehicle and cannot switch mid-way. The AMAP method is simpler and often better for lower-mileage vehicles.
Company Directors
Directors using their own car for company business can be reimbursed by the company at AMAP rates. The payment is an allowable deduction for corporation tax, and is tax/NI free for the director (up to the approved rate).
Mileage Allowance Relief (MAR)
If your employer pays less than the AMAP rate — or nothing at all — you can claim Mileage Allowance Relief on the difference. This is a tax relief, not a cash rebate — so you receive relief at your marginal income tax rate.
Example: You drive 8,000 business miles. Your employer pays 25p/mile (£2,000). The AMAP rate would be 45p/mile (£3,600). The shortfall is £1,600. As a 20% taxpayer, MAR gives you £320 back (£1,600 × 20%). As a 40% taxpayer, the relief is £640.
Claim MAR via Self Assessment or — if you don't normally file a return — through HMRC's online claim service (form P87 for claims under £2,500).
Mileage Claims for Company Cars
If you have a company car, you cannot claim the AMAP rate (45p/25p). Instead, HMRC publishes Advisory Fuel Rates (AFRs) — updated quarterly — which cover only the fuel element. AFRs range from around 10–22p/mile depending on engine size and fuel type.
For electric company cars, the AFR is a separate Advisory Electric Rate (AER), which is currently around 7–9p/mile for home charging.
Passenger Payments
If you carry a colleague on a business journey in your own car, your employer can pay an additional 5p per passenger per mile, tax free. This is on top of the AMAP rate for the driver. The passenger themselves cannot claim any mileage relief for being carried — only the driver can.
Record Keeping
To support a mileage claim (whether from an employer or on Self Assessment), keep a mileage log with:
- Date of each journey
- Start and end location, or the business purpose
- Number of miles driven
- Running total of business miles for the tax year
Records should be contemporaneous — recorded at the time of travel, not reconstructed later. HMRC can and does challenge mileage claims that appear estimated. Retain records for at least 6 years after the relevant tax year.