What is the HMRC approved mileage rate?
The HMRC Approved Mileage Allowance Payment (AMAP) rate is the amount you can claim tax-free for using your own vehicle for business travel. For self-employed people, claiming the mileage rate is the simplest way to account for vehicle costs — it covers fuel, insurance, wear and tear, and MOT in one flat rate per mile.
The rate increased to 55p per mile for the first 10,000 business miles from 6 April 2026 — the first rise since 2011, when it went from 40p to 45p.
How much can you claim at 55p/mile?
| Annual business miles | Previous claim (45p) | New claim (55p) | Difference |
|---|---|---|---|
| 2,000 miles | £900 | £1,100 | +£200 |
| 5,000 miles | £2,250 | £2,750 | +£500 |
| 8,000 miles | £3,600 | £4,400 | +£800 |
| 10,000 miles | £4,500 | £5,500 | +£1,000 |
Who can claim the HMRC mileage rate?
- Self-employed and sole traders — claim on your Self Assessment tax return
- Employees — your employer can reimburse you at 55p/mile tax-free
- Company directors — claim as a business expense through your limited company
- CIS workers and contractors — claim on your self-employed tax return
What counts as business mileage?
- ✅ Travel to client sites, temporary workplaces, or job sites
- ✅ Travel to meetings, training, and business events
- ✅ Running business errands (picking up materials, supplies)
- ✅ Travel between two workplaces
- ❌ Regular commute from home to your permanent workplace
- ❌ Personal journeys, shopping, school runs
Mileage rate vs actual costs — which is better?
You can either claim the flat HMRC mileage rate OR claim actual vehicle running costs (fuel, insurance, repairs) as a proportion of business use. You cannot claim both. For most self-employed workers with under 15,000 business miles per year, the flat rate is simpler and often gives a higher deduction.
Once you start claiming actual costs for a vehicle, you cannot switch to the mileage rate for that vehicle. Most accountants recommend starting with mileage rate unless you have very high actual costs.
How to keep a mileage log for HMRC
HMRC requires you to keep a record of every business journey including the date, start and end location, business purpose, and miles driven. Without a log, your mileage claim can be rejected. Records must be kept for at least 5 years after the Self Assessment filing deadline.