What is approved mileage allowance payment?
An approved mileage allowance payment is the amount an employer can pay an employee tax-free when they use their own vehicle for qualifying business journeys.
An approved mileage allowance payment, often shortened to AMAP, is a tax-free mileage payment an employer can make when an employee uses their own vehicle for business travel. The approved amount depends on the vehicle type, the number of business miles in the tax year and the HMRC mileage rate.
If the employer pays less than the approved amount, the employee may be able to claim tax relief on the shortfall. If the employer pays more than the approved amount, the extra amount may be taxable.
Why approved mileage allowance payments matter
AMAPs matter because they set the tax-free benchmark for reimbursing employees who use their own car, van, motorcycle or bicycle for qualifying work journeys.
Without this benchmark, it is easy to confuse three different things: what a journey costs in fuel, what an employer chooses to reimburse, and what HMRC allows to be paid tax-free.
Work out a mileage claim
Use business miles, vehicle type and employer rate to estimate reimbursement and possible tax relief.
Current HMRC approved mileage rates
For the 2026/27 tax year, HMRC lists the following approved mileage rates for business travel in an employee’s own vehicle.
| Vehicle type | First 10,000 business miles | Each business mile over 10,000 |
|---|---|---|
| Cars and vans | 55p per mile | 25p per mile |
| Motorcycles | 24p per mile | 24p per mile |
| Bicycles | 20p per mile | 20p per mile |
There is also a 5p per mile passenger payment for each passenger carried on a business journey in a car or van, where the passenger is also travelling for business.
How an AMAP calculation works
The calculation starts with the number of qualifying business miles in the tax year. For cars and vans, the first 10,000 business miles use one rate and any additional business miles use the lower rate.
Approved amount = business miles × HMRC mileage rate
Shortfall = approved amount - employer mileage payment
Tax relief estimate = shortfall × employee tax rateThe approved amount is not supposed to be a perfect fuel-cost calculation. It is a simplified mileage rate that can cover fuel, wear, servicing, insurance and other running costs related to business use.
Worked example
Suppose an employee drives 500 qualifying business miles in their own car during the 2026/27 tax year and their employer pays 45p per mile.
Approved amount = 500 miles × 55p = £275
Employer payment = 500 miles × 45p = £225
Shortfall = £275 - £225 = £50If the employee pays tax at 20%, the possible mileage allowance relief on that £50 shortfall would be £10. The exact position depends on the employee’s circumstances and how the claim is made.
AMAPs only apply to qualifying business mileage
An AMAP is not a blanket payment for every mile driven. It applies to qualifying business mileage, not ordinary private travel.
For many employees, normal travel from home to a regular workplace is ordinary commuting, even if the journey feels work-related. Business mileage is more likely to include journeys such as visiting a client site, travelling between workplaces, or making a work trip that is not ordinary commuting.
Check the business mileage guide
Use the guide to understand common examples before entering miles into the calculator.
AMAP vs actual fuel cost
An AMAP is different from actual fuel cost. Actual fuel cost depends on distance, fuel economy and the price paid for fuel or electricity.
The approved mileage rate is broader. It is a pence-per-mile tax benchmark, so it can be higher than the fuel-only cost because it also reflects wider vehicle running costs.
| Question | Use | Best tool |
|---|---|---|
| How much did the journey cost in petrol or diesel? | Fuel cost calculation | Fuel Cost Calculator |
| What is my claimable business mileage amount? | AMAP / mileage reimbursement calculation | Mileage Reimbursement Calculator |
| How much does each mile cost? | Pence per mile | Commute Cost Calculator |
Common mistakes
- Using the old car rate: the first-band car and van rate is 55p for 2026/27, not 45p.
- Claiming ordinary commuting: regular home-to-work travel is normally not qualifying business mileage.
- Ignoring the 10,000-mile band: cars and vans use a lower rate after the first 10,000 business miles in the tax year.
- Mixing fuel-only cost with AMAP: AMAP is a tax mileage rate, not just petrol or diesel cost.
- Forgetting employer payments: tax relief is usually based on any shortfall between the approved amount and what the employer paid.
Source notes
The figures on this page should be checked again before publishing if the tax year or HMRC guidance changes.
Approved mileage allowance payment FAQs
Is an approved mileage allowance payment tax-free?
It can be tax-free up to the HMRC approved amount for qualifying business mileage. Payments above the approved amount may be taxable.
Can I claim AMAP for commuting?
Usually no. Ordinary commuting between home and a regular workplace is normally not qualifying business mileage.
What happens if my employer pays less than the HMRC rate?
You may be able to claim mileage allowance relief on the shortfall, depending on your tax position and whether the miles qualify.
Does AMAP apply to electric cars?
Yes. The car and van mileage rate can apply when an employee uses their own electric car for qualifying business mileage.