TL;DR
The Approved Mileage Allowance Payment rate has stood at 45p a mile since 2011. Industry bodies have called for a rise to 55p to reflect higher fuel and running costs. The current published rate is what applies for 2026-27.
Calls to raise the Approved Mileage Allowance Payment rate to 55p have been highlighted by tax advisory bodies in submissions to the Treasury, with consumer commentators including Martin Lewis flagging that the rate has not changed since 2011. The published 2026-27 rate for cars and vans remains 45p a mile for the first 10,000 business miles.
How AMAP works today
Approved Mileage Allowance Payment is the rate at which employers can reimburse staff for using their own car for business journeys without triggering a taxable benefit. The published 2026-27 rate for cars and vans is 45p a mile for the first 10,000 business miles in a tax year, falling to 25p a mile thereafter.
Motorcycles attract 24p a mile and bicycles 20p a mile with no upper cap. Employers can pay below the published rates without tax consequences. Paying above is treated as a taxable benefit on the excess.
Why the rate is in focus
Industry bodies including the Association of Taxation Technicians and the Chartered Institute of Taxation have argued that the 45p rate, set in 2011, has not kept up with fuel, insurance and maintenance cost rises. Consumer commentators have noted the same gap.
Suggested replacement figures in those submissions sit around 55p a mile for the first 10,000 miles, in line with updates other countries have made to their statutory mileage rates over the same period.
What the change would mean
If the rate moved to 55p for the first 10,000 miles, a worker driving 8,000 business miles a year would receive £4,400 of tax-free reimbursement instead of £3,600, a £800 increase before tax. The exact saving depends on whether the employee was already topping up the gap themselves through Mileage Allowance Relief.
Mileage Allowance Relief is a tax-free deduction workers can claim on the gap between the published AMAP rate and what their employer actually pays. A change in the AMAP rate would either raise the tax-free reimbursement or reduce the size of the relief claim, depending on employer policy.
How drivers claim the relief now
Workers who receive less than the AMAP rate from their employer can claim Mileage Allowance Relief through their HMRC personal tax account. The relief reduces taxable income by the difference between the AMAP rate and the actual reimbursement.
Records of journeys, including date, purpose, start and end points and mileage, are required and should be kept for at least 22 months from the end of the tax year. HMRC may request the records during a compliance check.
What employers can change voluntarily
Employers can choose to pay above the published AMAP rate, but the excess is treated as taxable benefit and reported on the P11D form. Some employers run a separate logbook scheme to evidence higher actual per-mile costs, which can support a higher tax-free rate.
The Treasury reviews AMAP through periodic announcements at Budget and Autumn Statement. Any change to the published rate would be confirmed in a Budget document and published on gov.uk.
Key facts
- Current AMAP rate is 45p a mile for the first 10,000 business miles.
- Rate falls to 25p a mile above 10,000 miles.
- Motorcycles are 24p, bicycles 20p, with no upper cap.
- Rate has been unchanged since 2011.
- Mileage Allowance Relief is claimable on the gap between AMAP and actual pay.
FAQ
Has the AMAP rate changed to 55p?
No, the published 2026-27 rate is still 45p a mile for the first 10,000 business miles, falling to 25p a mile after that. Industry bodies have proposed 55p but the Treasury has not confirmed a change.
Who can claim Mileage Allowance Relief?
Workers who use their own car for business journeys and receive less than the AMAP rate from their employer can claim relief on the difference. The claim goes through the HMRC personal tax account.
Can my employer pay more than 45p a mile?
Yes, but anything above the AMAP rate is treated as a taxable benefit on the excess and reported on the P11D form. Employers can avoid the charge if they evidence higher actual per-mile costs.
What records do I need to keep?
HMRC expects contemporaneous records of date, purpose, start and end points, and mileage for each business journey. Keep records for at least 22 months after the end of the tax year.
