HMRC Mileage Allowance 2026-27: 45p First 10,000 Miles, 25p After
The HMRC Approved Mileage Allowance Payments rate for the 2026-27 tax year is 45 pence per mile for the first 10,000 business miles and 25 pence per mile for every mile after that. The rate has been frozen at these levels since 6 April 2011 - over a decade without an inflation adjustment despite real fuel and vehicle cost increases.
How the AMAP tier works
The 10,000-mile boundary is per employee, per UK tax year (6 April to 5 April). It is not per vehicle. If you drive two cars for work in the same tax year, the 10,000-mile tier-1 allowance applies once across both, not twice.
Once your cumulative business mileage in a tax year passes 10,000 miles, every additional mile is paid at 25 pence per mile rather than 45 pence per mile.
Motorcycle and bicycle rates
Motorcycles are paid at a flat 24 pence per mile with no tier. Bicycles are paid at 20 pence per mile, also flat. Both rates apply to all business miles regardless of annual total.
If you use a mix of vehicles in the same tax year, each set of miles is calculated against its own AMAP rate. You cannot lump motorcycle miles into the car tier.
What 'frozen since 2011' actually means for your wallet
In 2011 when AMAP was set at 45p / 25p, the average UK petrol price was around 132p per litre. As of 2026 the average is closer to 145p. Fuel-only operating cost has risen roughly 10 percent. Insurance and maintenance have risen substantially more.
The political case for an AMAP review has been raised in Parliament repeatedly without action. Major motoring associations (RAC, AA) have called the freeze unsustainable. For now the rate stands; budget around it, not against it.
If your employer pays less than AMAP
You can claim the difference between what your employer paid and the AMAP rate as a tax-free reimbursement. This is called Mileage Allowance Relief. Use form P87 if your annual claim is under £2,500; use Self Assessment if it is more.
FAQ
Can my employer pay more than 45p per mile?
Yes, but the excess above AMAP is treated as taxable income. So if your employer pays 50p per mile, the first 45p (up to 10,000 miles) is non-taxable and the additional 5p per mile is taxed as wages. Most employers stick to AMAP exactly to keep the tax math simple.
What if I have a company car?
Different rules apply. Company-car drivers use the HMRC advisory fuel rates (AFRs), which are reviewed quarterly and depend on engine size and fuel type. AFRs are typically much lower than AMAP because the company already covers the vehicle's depreciation, insurance, and maintenance.
Does AMAP apply to the self-employed?
Self-employed drivers can use the AMAP rates as 'simplified expenses' on Self Assessment, OR they can use actual expenses (a percentage of fuel, insurance, depreciation, etc.). AMAP is simpler; actual expenses can produce a larger deduction for higher-mileage or older-vehicle drivers.
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