Approved Mileage Allowance Payments are what an employer can pay you tax-free for business journeys in your own vehicle. From 6 April 2026 the car and van rate is 55p per mile for the first 10,000 business miles (the first rise since 2011, up from 45p), then 25p. Motorcycles get 24p, bicycles 20p, and carrying a colleague adds 5p a mile.
If your employer pays less than these rates you can claim Mileage Allowance Relief on the gap; if it pays more, the excess is taxable. Commuting to a permanent workplace never counts. Work out your claim with the Mileage Allowance Calculator and keep a compliant log with the Mileage Tracker.
You drive 6,000 business miles and your employer reimburses 30p a mile, £1,800. The approved amount is 6,000 × 55p = £3,300, so you claim Mileage Allowance Relief on the £1,500 gap: £300 back at basic rate, £600 at higher rate. Before the rate rose from 45p in April 2026, the same claim was worth a third less.
