HMRC mileage rates for 2025/26
| Vehicle | Miles | Rate per mile |
|---|---|---|
| Car or van | First 10,000 business miles | 45p |
| Car or van | Each mile above 10,000 | 25p |
| Motorcycle | All business miles | 24p |
| Bicycle | All business miles | 20p |
| Passenger | Per qualifying passenger | 5p (car only) |
These rates have been unchanged since 2011 for cars and motorcycles, despite fuel prices rising substantially. There’s periodic campaigning to update them, but as of 2025/26 they remain at the 2011 levels. The rates are intended to cover fuel, servicing, insurance, depreciation and all other running costs in a single per-mile figure.
Who can claim mileage
- Sole traders and partnerships — claim AMAP as a business expense on the Self Assessment return, reducing taxable profit pound-for-pound. Alternatively use the actual-cost method (more admin, occasionally better for expensive cars).
- Limited company directors and employees — the company reimburses you tax-free up to the AMAP rate. Any reimbursement above AMAP is taxable as a benefit in kind.
- Employees — claim Mileage Allowance Relief (MAR) through your tax return if your employer pays less than AMAP. You get tax relief at your marginal rate on the shortfall.
A freelancer driving 12,000 business miles in 2025/26 claims £4,500 for the first 10,000 miles (£0.45 × 10,000) plus £500 for the additional 2,000 miles (£0.25 × 2,000) — a £5,000 allowance total. For a sole trader at the 40% income tax band with 6% Class 4 NI, that’s £2,300 of tax saved.— GoForma technical team, 2025/26 tax year modelling
What counts as a qualifying business trip
HMRC allows mileage claims only for journeys that are "wholly and exclusively for business." Examples:
- Qualifies: visiting a client, travelling between two work sites in the same day, attending a conference, visiting a supplier, meeting for business that requires travel.
- Does not qualify: ordinary commuting between home and a permanent workplace; personal trips with minor business elements; detours on personal journeys.
- Grey area: temporary workplaces (less than 24 months or less than 40% of working time at a single site) generally qualify; "triangular travel" from home to a client direct is usually allowable.
Record-keeping requirements
HMRC requires contemporaneous evidence for every business journey:
- Date of the journey.
- Start and end location (postcode-level detail is ideal).
- Business purpose (e.g. "meeting with Acme Ltd re project kick-off").
- Miles driven.
- Passenger names if claiming the 5p supplement.
A phone-based mileage app, a notebook or a spreadsheet all work as long as you record trips as they happen. Retroactive reconstruction from calendar entries is common but less defensible in an enquiry.
AMAP vs actual-cost method
Sole traders and partnerships can choose between AMAP and the actual-cost method — claiming a proportion of all motoring costs (fuel, insurance, MOT, servicing, capital allowances) based on business-vs-private mileage ratio. Actual cost is more admin-heavy but can produce a larger claim for expensive cars with low annual mileage. Once you pick a method for a given vehicle, you must stick with it for as long as you own that vehicle.
AMAP is nearly always the right choice for:
- Moderate business mileage (under 10,000/year).
- Modest vehicles (under £25,000 purchase price).
- Anyone who wants simpler record-keeping.