Question 1

What are the HMRC mileage rates for 2026/27?

Accepted Answer

The HMRC Approved Mileage Allowance Payment (AMAP) rates for 2026/27 are: cars and vans  -  55p per mile for the first 10,000 business miles in a tax year, then 25p per mile above that; motorcycles  -  24p per mile for all miles; bicycles  -  20p per mile. The car rate rose from 45p to 55p from 6 April 2026, the first increase since 2011. If your employer pays less than the AMAP rate, you can claim Mileage Allowance Relief on the difference.

Question 2

How do I claim mileage as an employee?

Accepted Answer

If your employer pays you less than the HMRC approved rate (or nothing at all), you can claim Mileage Allowance Relief (MAR) on the shortfall. If you complete a self-assessment return, include it there. If not, use form P87 (available on GOV.UK) to claim up to four years retrospectively. The relief is worth the shortfall × your income tax rate  -  so on £1,000 of unclaimed MAR, a basic-rate taxpayer gets £200 back.

Question 3

Can I claim mileage if I'm self-employed?

Accepted Answer

Yes  -  self-employed people can use the HMRC simplified expenses (mileage) method instead of claiming actual vehicle costs. You cannot switch between methods for the same vehicle once the business has started. The mileage claim is deducted from your trading income before income tax and Class 4 NI are calculated, making it worth the claim amount × your marginal tax rate. Keep a mileage log with dates, destinations and purposes.

Question 4

Does mileage include my commute?

Accepted Answer

No. Travel between your home and your regular, permanent workplace is commuting and is not claimable. Business mileage only covers travel from your permanent workplace to temporary workplaces, between temporary workplaces, or from home to a temporary workplace. If you are self-employed with no fixed workplace, journeys from home to client sites generally qualify as business travel.

Question 5

How much tax does claiming 10,000 business miles actually save?

Accepted Answer

At 55p per mile, 10,000 business miles generates a £5,500 deduction (or relief on £5,500 of income). For a basic-rate taxpayer (20%), that is a £1,100 tax saving. For a higher-rate taxpayer (40%), it is £2,200. If your employer pays you 20p per mile and you do 10,000 miles, the unclaimed shortfall is 35p × 10,000 = £3,500, worth £700 to a basic-rate taxpayer via a P87 or self-assessment claim.

Question 6

Can I claim mileage AND actual vehicle costs?

Accepted Answer

No  -  for any given vehicle, self-employed people must choose either the HMRC mileage (simplified expenses) method or the actual costs method (fuel, insurance, servicing, depreciation apportioned for business use). Once you have used the actual costs method for a vehicle, you cannot switch to mileage for that vehicle. Most self-employed drivers with modest mileage find the 55p flat rate simpler and often more generous than calculating actual costs.

Question 7

How far back can I claim mileage relief?

Accepted Answer

Employees can claim Mileage Allowance Relief going back four tax years using form P87 (or via self-assessment if they file a return). For 2026/27 claims, the deadline is 5 April 2031. If you have not claimed in previous years and your employer paid less than the HMRC rate, it is worth calculating the shortfall for each year  -  even modest mileage adds up across four years.

Question 8

Is there a passenger payment I can claim?

Accepted Answer

Yes. If you carry a fellow employee as a passenger on a business journey in your own car, you can receive or claim an additional 5p per mile for each passenger. This is on top of the standard car rate and applies for every business mile travelled with that passenger. It must be claimed separately and requires the same mileage log evidence.

HMRC Mileage Calculator UK 2026/27