Calculate your HMRC AMAP mileage claim and potential tax relief for 2026-27
If you use your own car, motorcycle, or bicycle for business travel, HMRC allows you to claim a mileage allowance known as AMAP (Approved Mileage Allowance Payment). This tax-free reimbursement is designed to cover the cost of fuel, wear and tear, insurance, and depreciation when you use a personal vehicle for work purposes. For the 2026-27 tax year, the rates are 45p per mile for the first 10,000 business miles in a car or van, dropping to 25p per mile for any additional miles beyond that threshold. The AMAP system is straightforward for employees whose employers pay at or above the approved rate -- the payment is simply tax-free. However, many employees either receive a lower mileage rate from their employer or receive nothing at all. In these cases, you can claim Mileage Allowance Relief (MAR) on the shortfall through your self-assessment tax return or HMRC form P87. This calculator works out your total AMAP entitlement, breaks it down by the two rate tiers for cars, includes any passenger supplement, and shows the potential tax relief you could claim if your employer pays less than the HMRC approved rate. Understanding these figures is important because many employees miss out on legitimate tax relief simply because they do not realise they can claim. Motorcyclists receive a flat rate of 24p per mile regardless of distance, while cyclists can claim 20p per mile. These rates have remained unchanged for several years despite rising costs, which means the actual cost of business travel often exceeds the HMRC allowance -- but the approved rates remain the maximum that can be claimed tax-free. The passenger supplement of 5p per mile per passenger applies only to cars and vans when colleagues travel together on the same business journey. This encourages car sharing and can add a meaningful amount to your claim if you regularly carry colleagues.
To calculate your HMRC mileage allowance: 1. Enter your total business miles for the tax year. Only journeys for business purposes count -- commuting between home and your normal workplace does not qualify. Business miles include visits to clients, travel to temporary workplaces, and journeys between different work locations. 2. Select your vehicle type. The AMAP rates differ by vehicle: cars and vans use the tiered 45p/25p rates, motorcycles use a flat 24p rate, and bicycles use a flat 20p rate. 3. Enter the number of passengers carried on business journeys. This only applies to cars and adds 5p per mile per passenger. If you carry colleagues on business trips, include them here. 4. Select your income tax rate. This determines the value of any Mileage Allowance Relief claim -- a higher-rate taxpayer gets 40% relief compared to 20% for a basic-rate taxpayer. 5. Review the results. The calculator shows your total mileage allowance broken down by the first 10,000 miles and any miles over 10,000, plus the passenger supplement. The potential tax relief figure shows what you could save if you claim MAR on the full AMAP amount through your tax return. 6. If your employer pays you a mileage rate, subtract that from the AMAP rate to find your claimable shortfall. For example, if your employer pays 25p per mile and you drove 8,000 business miles, you could claim relief on 20p per mile (the difference between 45p AMAP and 25p employer rate), totalling GBP 1,600. 7. Keep accurate records of every business journey including date, destination, purpose, and miles driven. HMRC may ask for evidence to support your claim.
The HMRC Approved Mileage Allowance Payment (AMAP) calculation uses fixed rates published by HMRC for the 2026-27 tax year. **Car and van rates (tiered):** First 10,000 business miles: 45p per mile. Miles over 10,000: 25p per mile. The calculation splits your total business miles into two tiers: First tier allowance = minimum of (business miles, 10,000) x GBP 0.45 Second tier allowance = maximum of (0, business miles minus 10,000) x GBP 0.25 Total allowance = first tier + second tier For example, 8,000 business miles: 8,000 x GBP 0.45 = GBP 3,600 (all within the first tier). For 15,000 business miles: first 10,000 x GBP 0.45 = GBP 4,500, plus 5,000 x GBP 0.25 = GBP 1,250. Total allowance = GBP 5,750. **Motorcycle rate (flat):** All miles at 24p: total allowance = business miles x GBP 0.24. For 5,000 motorcycle miles: 5,000 x GBP 0.24 = GBP 1,200. **Bicycle rate (flat):** All miles at 20p: total allowance = business miles x GBP 0.20. For 3,000 bicycle miles: 3,000 x GBP 0.20 = GBP 600. **Passenger supplement:** For cars only, an additional 5p per mile per passenger applies when colleagues share the same business journey: Passenger allowance = business miles x number of passengers x GBP 0.05 For 8,000 miles with 2 passengers: 8,000 x 2 x GBP 0.05 = GBP 800. **Total claim** = vehicle allowance + passenger allowance. **Tax relief calculation:** If your employer pays less than the AMAP rate (or pays nothing), you can claim Mileage Allowance Relief on the difference. The tax saving is: Tax relief = total AMAP entitlement x income tax rate / 100 For 8,000 miles with no passengers at 20% tax: GBP 3,600 x 20 / 100 = GBP 720 tax relief. At 40%: GBP 3,600 x 40 / 100 = GBP 1,440. If your employer does pay a mileage rate, the relief is on the shortfall only. For example, if your employer pays 30p per mile for 8,000 miles (GBP 2,400), your shortfall is GBP 3,600 minus GBP 2,400 = GBP 1,200, and tax relief at 20% = GBP 240. Claims are made through self-assessment (SA100) or, for employees not in self-assessment, via HMRC form P87. You must keep mileage logs recording the date, start and end points, purpose of the journey, and miles driven for each business trip.