HMRC Mileage Allowance Rates 2026/27
Quick-lookup AMAP rates by vehicle, prior-year figures, and how National Insurance treats mileage differently from Income Tax
AMAP rates by vehicle, 2026/27
| Vehicle | First 10,000 business miles | Each mile after |
|---|---|---|
| Car or van | 55p | 25p |
| Motorcycle | 24p | 24p (flat rate) |
| Bicycle | 20p | 20p (flat rate) |
| Passenger add-on (per colleague) | 5p per mile, on top of the driver's rate | |
These are HMRC's Approved Mileage Allowance Payment (AMAP) rates — the amount an employer can reimburse, or an employee can claim, free of Income Tax. The 10,000-mile threshold resets every 6 April and is per employee, per employer.
Claiming the shortfall: Mileage Allowance Relief
If your employer pays you less than the AMAP rate — or nothing at all — you can claim Mileage Allowance Relief (MAR) on the difference. Total employment expenses under £2,500 for the year go on Form P87; above that, or if you already file, claim it on your Self Assessment return.
If your employer pays more than the AMAP rate, the excess counts as taxable earnings on your P11D (or through payroll) and is subject to Income Tax.
National Insurance uses a different rate than tax
HMRC actually runs two separate mileage schemes — one for Income Tax, one for National Insurance — and for cars and vans they don't match past 10,000 miles. The Income Tax approved rate drops from 55p to 25p once you pass 10,000 business miles in the tax year. The National Insurance approved amount doesn't: it stays at a flat 55p per mile for every business mile, with no drop at 10,000.
| Purpose | First 10,000 miles | Each mile after |
|---|---|---|
| Income Tax (AMAP) | 55p | 25p |
| National Insurance | 55p | 55p (no drop) |
The practical effect: past 10,000 business miles, an employer can pay up to 55p per mile with no employee or employer NIC due at all, even though only 25p of that is free of Income Tax. The 30p gap between the two rates is taxable income but is NOT subject to National Insurance — a quirk that mainly matters to employers setting a single flat reimbursement rate above 25p for high-mileage drivers. Motorcycle and bicycle rates are already flat, so this gap doesn't apply to them.
Rates by tax year
| Rate | 2026/27 | 2025/26 |
|---|---|---|
| Car/van — first 10,000 miles (tax) | 55p | 45p |
| Car/van — over 10,000 miles (tax) | 25p | 25p |
| Car/van — National Insurance (flat) | 55p | 45p |
| Motorcycle (flat) | 24p | 24p |
| Bicycle (flat) | 20p | 20p |
| Passenger add-on | 5p | 5p |
Use the rate for the tax year the journey took place in, not the year you're claiming in. To calculate a claim or check a taxable excess, use the Mileage Allowance Calculator.
Frequently asked questions
What are the HMRC mileage allowance rates for 2026/27?
HMRC's Approved Mileage Allowance Payments (AMAPs) for 2026/27 are 55p per mile for the first 10,000 business miles by car or van, then 25p per mile after that. Motorcycles are a flat 24p per mile, bicycles a flat 20p per mile, and there is an extra 5p per mile if you carry a colleague from the same employer as a passenger on a business journey.
Did the mileage allowance rate change for 2026/27?
Yes. The car and van rate rose from 45p to 55p per mile for the first 10,000 business miles, effective 6 April 2026 — the first change since 2011-12. HMRC announced the rise on 21 May 2026 and made it retrospective to 6 April 2026, legislated via the Taxation (Energy and Vehicles) Bill. The over-10,000-mile rate (25p), motorcycle rate (24p), bicycle rate (20p) and passenger rate (5p) are all unchanged.
What is Mileage Allowance Relief (MAR)?
If your employer reimburses you at less than the approved rate — or doesn't pay you anything for business mileage — you can claim Mileage Allowance Relief on the shortfall. Use Form P87 if your total employment expenses are under £2,500 for the year; otherwise claim it on your Self Assessment return. Use the Mileage Allowance Calculator to work out your claim.
Does National Insurance use the same mileage rate as tax?
Not quite. For Income Tax, the car/van rate drops from 55p to 25p after 10,000 business miles in the year. For National Insurance, HMRC's approved amount is a single flat rate of 55p per mile for every business mile — there is no 10,000-mile drop. In practice this means that past 10,000 miles, an employer can pay up to 55p per mile completely free of Class 1 NIC, even though only 25p of that is Income-Tax-free — the 30p gap is taxable but not NICable.
What happens if my employer pays more than the approved rate?
The excess over the approved amount is treated as taxable earnings and reported on a P11D (or payrolled), and is subject to employee Income Tax and, for the tax-only excess above the flat NIC rate described above, employer Class 1A National Insurance.
What were the mileage rates in previous tax years?
For 2025/26 the car/van rate was 45p per mile for the first 10,000 business miles and 25p after that, with the same 24p motorcycle, 20p bicycle and 5p passenger rates as 2026/27. Use the rate for the tax year the journey actually took place in — a 2025/26 claim uses 45p/25p, not the 2026/27 rate.
Do these rates apply across the whole UK?
Yes. AMAP rates are set under Section 230 ITEPA 2003 and apply identically in England, Scotland, Wales and Northern Ireland — there is no separate Scottish or Welsh mileage rate.
Sources
Reflects 2026/27 AMAP rates, verified against gov.uk.
Related Calculators
Mileage Allowance Calculator
55p/25p AMAP rates for cars (2026-27), 24p motorcycles, 20p bicycles, and a Mileage Allowance Relief claim check.
P87 Employment Expenses Calculator
Claim tax relief on uniform, tools, professional fees, mileage, and WFH without Self Assessment (£2,500/yr cap).
Self-Employment Tax Calculator
Income tax plus Class 2 & 4 NI for sole traders.
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