What is the HMRC mileage rate for cars in 2026/27?

The approved HMRC mileage rate for cars is 55p per mile for the first 10,000 business miles in the tax year, and 25p per mile after that. These are called Approved Mileage Allowance Payments (AMAPs).

What is the mileage rate for motorcycles?

The HMRC approved mileage rate for motorcycles is 24p per mile — this rate applies regardless of how many miles you travel. There is no split rate for motorcycles.

HMRC Mileage Calculator 2026/27 | Business Mileage Claim

Q: Can I claim mileage as a sole trader?

Yes. Sole traders and partnerships can use HMRC's simplified mileage rates instead of claiming actual vehicle costs. You cannot claim both — it's one or the other, and once you choose the actual cost method for a vehicle you must stick with it.

Q: What mileage records does HMRC require?

HMRC expects a mileage log that records: date, start and end location (or purpose), business reason, and miles driven per trip. A contemporaneous log (recorded at the time) is best. A retrospective estimate is unlikely to be accepted in an enquiry.

Q: What counts as a business journey?

A business journey is any trip made wholly and exclusively for business purposes — visiting clients, going to a supplier, attending a professional event. Normal commuting from home to your regular workplace does not qualify. However, if you work from home or travel to a temporary workplace, those journeys may qualify.

Where these figures come from. See the HMRC approved mileage allowance payment rates applied above, each with its official source and the date UKCalc last checked it, on the 2026/27 rates and thresholds UKCalc uses.

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Frequently Asked Questions

What is the HMRC mileage rate for cars? ▼

55p per mile for the first 10,000 business miles, then 25p per mile after that. These Approved Mileage Allowance Payments (AMAPs) apply to private cars used for business. You can claim these whether you're employed, self-employed, or a company director.

Can I claim mileage as a sole trader? ▼

Yes. Sole traders can use simplified mileage rates instead of claiming actual vehicle running costs. Once you start using actual costs for a vehicle, you can't switch to mileage rates for that vehicle later. Most low-mileage sole traders find the simplified rate more straightforward.

What mileage records does HMRC require? ▼

Keep a log recording: date, start and end points (or business purpose), and miles driven. Record trips as you go — HMRC is sceptical of estimates reconstructed later. Apps like TripLog or MileIQ can automate this. Retain records for at least 6 years.

What counts as a business journey? ▼

Any journey made wholly for business: client visits, supplier trips, attending business events, travelling between work sites. Ordinary commuting — home to your regular workplace — does not qualify. If your home is genuinely your workplace (e.g., you're a contractor), journeys to a client site may qualify.

What if my employer pays me less than the HMRC rate? ▼

If your employer reimburses you at less than the HMRC approved rate, you can claim Mileage Allowance Relief (MAR) on the difference. For example, if you're paid 30p/mile but the AMAP is 55p, you can claim tax relief on the 25p gap through your Self Assessment tax return or by contacting HMRC.

Vehicle

Rate

Car — first 10,000 miles

55p/mile

Car — over 10,000 miles

25p/mile

Motorcycle

24p/mile

Bicycle

20p/mile

How HMRC business mileage rules work in 2026/27

HMRC's Approved Mileage Allowance Payments (AMAP) rates for 2026/27 let employees claim tax-free mileage when using their own vehicle for business journeys. The rates: 55p per mile for the first 10,000 business miles in a tax year, then 25p per mile thereafter. Motorcycles are 24p/mile (no taper); bicycles are 20p/mile; carrying a fellow employee adds 5p/mile. The car rate rose from 45p to 55p for 2026/27, its first increase since 2011 — but the 25p rate above 10,000 miles and the motorcycle and bicycle rates are unchanged, so real-terms purchasing power for high-mileage drivers has still fallen.

If your employer reimburses you AT the AMAP rates, the payment is entirely tax-free. If they pay LESS (e.g., 25p/mile from the first mile), you can claim Mileage Allowance Relief on the shortfall via Self Assessment or Form P87 — the relief recovers tax at your marginal rate on the difference between the AMAP rate and what your employer paid. So a basic-rate taxpayer doing 5,000 miles at 25p (employer rate) instead of 55p (AMAP) can claim relief on the £1,500 shortfall, recovering £300 of tax.

If your employer reimburses ABOVE the AMAP rate, the excess is taxable — added to your salary as a benefit-in-kind. So 60p/mile (15p above AMAP) on 10,000 miles creates a £1,500 taxable benefit, costing about £300 for a basic-rate taxpayer or £600 for higher-rate. Most employers stick at or below AMAP rates to avoid this complexity.

Business mileage definition: journeys "necessarily incurred in the performance of duties" — typically client visits, between-site travel for the same employer, training events, and one-off business trips. Commuting from home to your normal workplace is NOT business mileage. Working from home and visiting your employer's office occasionally? Generally still commuting. Travel between two different workplaces for the same employer? Generally business mileage. Records matter: HMRC expects a contemporaneous log showing date, journey purpose, start/end locations, and mileage. Apps like TripCatcher, MileIQ, and HMRC's own mileage records make this routine. Without a log, mileage relief claims can be denied at enquiry.