UK Guide · Updated for 2026/27 rate increase
HMRC Mileage Rates 2025/26 & 2026/27
The current HMRC Approved Mileage Allowance Payment (AMAP) rates — what they are, how the 10,000-mile car threshold works, and what to do if you drive an electric vehicle.
Cars & Vans
55p / 25p
From 06-04-2026: first 10,000 miles / above 10,000
Before 06-04-2026: 45p / 25p
Motorcycles
24p
Flat rate — no threshold
Bicycles
20p
Flat rate — no threshold
What are HMRC AMAP rates?
Approved Mileage Allowance Payments (AMAP) are the rates HMRC allows you to use when claiming a tax deduction for business journeys made in your own vehicle. They cover all costs of running the vehicle — fuel, insurance, MOT, servicing, depreciation — so you do not need fuel receipts or detailed expense logs.
You simply record the date, business purpose, start and end locations, and miles driven for each journey.
The rates apply to sole traders claiming mileage on their Self Assessment return, and to employees and directors being reimbursed by their employer or company. If you are reimbursed below the AMAP rate, you can claim Mileage Allowance Relief (MAR) on the difference.
How the 10,000-mile car threshold works
For cars and vans, the AMAP rate is split into two tiers based on how many business miles you drive in a tax year (6 April to 5 April):
First 10,000 miles
55p
per mile — from 06-04-2026
(45p per mile before 06-04-2026)
Above 10,000 miles
25p
per mile — unchanged
The threshold resets each 6 April. Motorcycles and bicycles are not subject to any threshold — they use a single flat rate for all mileage.
Worked example — 2026/27 tax year (from 06-04-2026)
Suppose you drive 14,000 business miles in the 2026/27 tax year:
Worked example — 2025/26 tax year (before 06-04-2026)
Suppose you drive 14,000 business miles in the 2025/26 tax year:
MileageClaim tracks the 10,000-mile threshold automatically. The moment you cross it, new journeys calculate at 25p — no action needed from you.
Electric vehicles
Your own personal electric car
If you use your own personal electric car for business journeys, you can claim at the standard AMAP rate — 55p/25p from 06-04-2026 (45p/25p before). HMRC treats it the same as a petrol or diesel vehicle — the flat rate covers all costs including charging.
Company-provided electric car
If your employer or company provides you with an electric car, HMRC uses the Advisory Electricity Rate (AER) instead — currently 7p per mile for 2025/26. This changes quarterly. Speak to your accountant if you drive a company-owned electric vehicle.
Passenger payments
If you carry a fellow employee as a passenger on a business journey, you can claim an additional 5p per mile per passenger on top of the standard AMAP rate. This is separate from the 55p/25p rate (45p/25p before 06-04-2026) and is not subject to the 10,000-mile threshold.
HMRC mileage rate history
The car and van rate was unchanged from April 2011 until April 2026, when HMRC increased it from 45p to 55p. The table below shows the full history of UK business mileage rates:
| Tax period | Cars & Vans | Motorcycles | Bicycles |
|---|---|---|---|
| 2026/27 onwards (from 06-04-2026)Current | 55p / 25p | 24p | 20p |
| 2011/12 – 2025/26 (up to 05-04-2026) | 45p / 25p | 24p | 20p |
| 2010/11 | 40p / 25p | 24p | 20p |
| 2002/03 – 2009/10 | 40p / 25p | 24p | 20p |
Frequently asked questions
What is the HMRC mileage rate for 2025/26?
The HMRC mileage rate for 2025/26 is 45p per mile for cars and vans for the first 10,000 business miles in the tax year, then 25p per mile above 10,000. Motorcycles are 24p per mile (flat rate). Bicycles are 20p per mile (flat rate). These are the Approved Mileage Allowance Payment (AMAP) rates.
Have HMRC mileage rates changed for 2026/27?
Yes. From 6 April 2026 (the start of tax year 2026/27), HMRC increased the approved mileage allowance rate for cars and vans from 45p to 55p per mile for the first 10,000 business miles — the first increase since April 2011. The above-threshold rate of 25p per mile remains unchanged, as do the rates for motorcycles (24p) and bicycles (20p). Journeys made before 6 April 2026 still use the 45p rate.
What is the 10,000-mile threshold?
For cars and vans, the AMAP rate applies to the first 10,000 business miles in a tax year — 55p per mile from 6 April 2026 (45p per mile for journeys before that date). Once you exceed 10,000 miles, every additional mile is paid at 25p. The threshold resets each 6 April. Motorcycles and bicycles have no threshold — they use a single flat rate.
What is the Advisory Electricity Rate for electric vehicles?
For company-owned electric vehicles, HMRC publishes an Advisory Electricity Rate (AER) separately from AMAP rates. The AER for 2025/26 is 7p per mile. However, if you use your own personal electric car for business, you can still claim using the standard AMAP rate — 55p/25p from 6 April 2026 (45p/25p before) — the AER only applies to company-provided cars.
Apply the correct rate automatically
MileageClaim automatically applies 55p/25p for journeys from 06-04-2026 and 45p/25p before — tracks your 10,000-mile threshold, and generates a clean PDF for your accountant. Free forever for UK sole traders and directors.
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