HMRC AMAP & Tax Relief Summary
If you use your personal car, van, motorcycle, or bicycle for business travel required by your employer in the UK, your employer can pay you tax-free Approved Mileage Allowance Payments (AMAP).
If your employer pays you less than HMRC’s statutory tax-free mileage rates (or pays nothing at all), you are legally entitled to claim Mileage Allowance Relief (MAR) tax relief directly from HMRC, resulting in a valuable annual tax refund.
⚙️ Rules & Thresholds
- HMRC Statutory AMAP Tax-Free Rates (2026/27):
- Cars & Vans (First 10,000 Business Miles): 45p per mile.
- Cars & Vans (Over 10,000 Business Miles): 25p per mile.
- Motorcycles: 24p per mile (flat rate for all mileage).
- Bicycles: 20p per mile (flat rate for all mileage).
- Passenger Top-Up: Extra 5p per mile per passenger carrying fellow employees on business trips.
- Mileage Allowance Relief (MAR) Tax Refund Formula:
Shortfall = Statutory Tax-Free AMAP Allowance - Employer Payment Received.HMRC Tax Refund = Shortfall Amount × Marginal Income Tax Rate (20%, 40%, or 45%). - Claim Methods:
- Claims under £2,500 per tax year can be claimed online via a P87 form or HMRC Personal Tax Account.
- Claims of £2,500+ must be claimed via a Self Assessment tax return.
📊 Practical Examples
- Total Business Miles: 12,500 Miles in a Personal Car
- First 10,000 Miles Allowance: 10,000 × 45p = £4,500.00
- Remaining 2,500 Miles Allowance: 2,500 × 25p = £625.00
- Total Statutory HMRC Allowance: **£5,125.00**
- Employer Payments Received: 12,500 miles × 30p = £3,750.00
- Unreimbursed Shortfall: £5,125.00 - £3,750.00 = **£1,375.00**
HMRC Tax Refund Claim (20% Basic Rate Taxpayer): £1,375.00 × 20% = **£275.00 cash refund** from HMRC!
📑 Common Pitfalls
- Claiming Ordinary Commuting: Travelling between your home and your permanent place of work is classified by HMRC as “ordinary commuting” and is ineligible for AMAP tax relief.
- Failing to Maintain a Business Mileage Log: HMRC requires detailed logs recording date, trip destination, business purpose, and start/end mileage readings.
- Missing the 4-Year Claim Deadline: You can backdate unclaimed Mileage Allowance Relief tax refunds for up to 4 previous tax years.
❓ Frequently Asked Questions (FAQ)
HMRC defines business travel as journeys undertaken exclusively for work duties, such as visiting clients, attending supplier meetings, travelling between temporary work sites, or travelling to training courses. Travel between home and your permanent workplace is excluded.
If your claim is under £2,500 for the tax year, submit a P87 form online through your HMRC Personal Tax Account or GOV.UK. If your mileage claim exceeds £2,500, you must file a Self Assessment tax return.
If your employer reimburses you at a rate higher than HMRC's statutory 45p AMAP rate (e.g. 50p/mile), the excess 5p per mile is treated as taxable benefit-in-kind income and must be reported on form P11D.
Yes. If an employee uses their personal electric vehicle (EV) for business travel, the standard statutory 45p/25p AMAP rates apply equally to electric cars, providing substantial tax relief benefits.