The approved mileage allowance payment (AMAP) is the tax-free payment system where individuals who use their own vehicles for work use can claim back the cost(s) of the trip(s) from HMRC. It doesn’t just cover fuel but also servicing, new tyres, insurance and Vehicle Excise Duty.
| Vehicle Type | Approved HMRC Mileage Rates |
| Car | £0.45p per mile up to 10,000 miles£0.25p for every mile over 10,000 miles |
| Passenger’s mileage allowance rate | £0.05p for every passenger for each business mile |
| Motorcycle | £0.24p per mile |
| Bicycle | £0.20p per mile |
HMRC guidelines state that business mileage AMAP is the maximum permissible rate. So long as the payments do not exceed the AMAP limits, you will not pay income tax or National Insurance against them. It must also be noted that passengers must also be employees of the company and on the same business trip. Finally, passenger rates apply to cars only.
Important
Your daily commute is not a business journey so you are not entitled to claim that back. A business trip is considered a journey from one place of work to another or to a temporary workplace.
My employer pays me a mileage allowance. How will this affect me?
The amount you are paid by your employers will need to be considered before you start claiming a mileage allowance with HMRC. There are two types of mileage rate paid by an employer:
- Non taxed mileage rate If the mileage rate paid by your employer is less than the AMAP rates, the difference may be claimed back as mileage tax relief.
- Taxed mileage rate If your mileage allowance is taxed as part of your salary, you are probably eligible to claim back the full AMAP rate.
Payments are made directly from the employer to the person making the claim. This means that it can only be claimed against income tax paid when at that employer.
How do I claim mileage back from HMRC?
This varies depending on the actual value of the claim you are making.
- For mileage claims above £2500 in the tax year: You’ll need to complete a self-assessment tax return. You should declare all of your income on the tax return and include the mileage expenses you intend to reclaim
- For mileage claims below £2500: You must make a claim in writing or on a form P87. This should include records of your business mileage.
Claiming back the HMRC approved mileage rates can be a lengthy process, especially if you don’t provide all relevant details to HMRC. To make a successful claim you should have:
- Travel dates
- Miles covered
- Record of any mileage allowance paid to you by your employer
It is important to ensure that you understand what you can claim back and only claim back what you are actually entitled to claim. As the rates for different vehicle types vary, if you use a car for one trip and a motorcycle for another, it is important to keep separate records of this.
You can use our free mileage tax rebate calculator to get an estimate of your mileage tax rebate claim and find out how to submit your claim to the tax office (HMRC).
