The Approved Mileage Allowance Payment (AMAP) lets self-employed workers and business travellers claim a flat rate per mile instead of tracking actual fuel and running costs. For 2026/27 cars and vans get 55p per mile for the first 10,000 business miles, then 25p — the first rate change since 2011. Motorcycles are 24p and bicycles 20p (both unchanged). Enter your miles above to see your exact claim.
- The car/van mileage rate rose to 55p on 6 April 2026 — up from 45p, its first increase since 2011.
- The 55p rate applies to the first 10,000 business miles per tax year; miles above that attract 25p.
- Motorcycles attract 24p per mile flat; bicycles 20p per mile flat — both unchanged.
- You cannot claim both the simplified mileage rate and actual running costs (fuel, insurance, depreciation) for the same vehicle in the same tax year — pick one method and stick with it.
- The mileage claim is almost always worth more than the £1,000 trading allowance for anyone driving regularly for work.
- Keep a mileage log (date, start, destination, purpose, miles) — HMRC can ask for it.
What is the mileage allowance rate for 2026/27?
| Vehicle | First 10,000 miles | Above 10,000 miles |
|---|---|---|
| Car or van | 55p | 25p |
| Motorcycle | 24p | 24p (flat) |
| Bicycle | 20p | 20p (flat) |
Source: HMRC Travel — mileage and fuel rates and allowances (gov.uk, updated 21 May 2026).
How does the 10,000-mile threshold work?
The 10,000-mile threshold resets each tax year (6 April to 5 April). If you drive 15,000 business miles in 2026/27, you claim 10,000 × 55p = £5,500 plus 5,000 × 25p = £1,250 — a total of £6,750. The threshold is per vehicle if you use more than one car or van for business; drives in an employer's vehicle use a separate AMAP framework.
Worked example — Deliveroo rider, 8,000 miles
| Step | Calculation | Amount |
|---|---|---|
| Business miles (car/van) | 8,000 — all within first 10,000 | — |
| Mileage allowance | 8,000 × 55p | £4,400 |
| Estimated tax saved | £4,400 × 26% (Income Tax 20% + Class 4 NI 6%) | ~£1,144 |
| vs trading allowance | £4,400 vs £1,000 | 4.4× bigger |
A delivery rider covering 8,000 miles who takes the trading allowance instead leaves roughly £880 of extra deduction — and about £229 of tax saving — on the table.
Mileage allowance vs actual costs — which should I claim?
The simplified mileage method covers all running costs: fuel, oil, tyres, servicing, insurance, vehicle excise duty, and depreciation. If you choose this method for a vehicle you must use it for the life of that vehicle in the business. You cannot switch back to actual costs later (or vice versa) for the same vehicle.
Choose simplified mileage if you drive a fuel-efficient car with low running costs, or if you want simple record-keeping. The 55p rate is generous enough that many drivers come out ahead of actual costs.
Choose actual costs if your vehicle is expensive to run (large engine, old tyres, high insurance) and you keep meticulous receipts. You'll also need to apportion costs between business and private use.
What counts as a business mile?
A business mile is one driven wholly for business purposes — travel to a client site, a delivery, a supply run. Your ordinary commute from home to a fixed workplace is not a business mile and cannot be claimed. If you work from home, journeys from home to clients count.
Frequently asked questions
Did the mileage rate change for 2026/27?
Yes. The car and van rate rose from 45p to 55p per mile (first 10,000 business miles) with effect from 6 April 2026 — the first increase since 2011. The 25p rate for miles above 10,000 is unchanged. Motorcycle (24p) and bicycle (20p) rates are also unchanged.
Can I claim mileage on top of the £1,000 trading allowance?
No. You choose one deduction method: either the £1,000 trading allowance or your actual allowable expenses (which include mileage). You cannot combine them. For most drivers, mileage alone will exceed £1,000 — so itemising is nearly always the better choice.
Do I need receipts to claim mileage allowance?
You do not need fuel receipts, but you do need a mileage log. HMRC expects a record of each journey: date, starting point, destination, business purpose, and miles. A spreadsheet, a dedicated app, or a paper log all work — keep records for at least five years after the 31 January filing deadline.
Does the 10,000-mile limit reset every year?
Yes. Each tax year (6 April to 5 April) you get a fresh 10,000-mile allowance at the higher rate. Miles do not carry forward from one year to the next.