26 March 2026
HM Treasury has announced an upcoming review of the approved mileage allowance payment rates (AMAP) for mileage.
Claiming mileage allowance is one of the most common tax relief questions, particularly for employees who use their own vehicle for business travel.
If employees use their own car for business journeys, they can claim the tax-free mileage allowance based on these approved rates:
Approved mileage rates from tax year 2011 to 2012 to present date
|
From tax year 2011 to 2012 onwards |
First 10,000 business miles in the tax year |
Each business mile over 10,000 in the tax year |
|
Cars and vans |
45p |
25p |
|
Motor cycles |
24p |
24p |
|
Bicycles |
20p |
20p |
If employees are reimbursed at a lower rate than the HMRC’s approved rates, they may be able to claim tax relief on the difference.
The Chancellor has recently highlighted that the AMAP rates have not been updated since 2011.
The government has confirmed they will be conducting a workers-first review that will focus on people who rely on their car to do their job, ensuring they are not left out of pocket. As part of this, the government will meet with people struggling with increased costs to inform them of this work as it develops. Please note the review has been committed to be carried out ‘ahead of a future budget’, but it will hopefully be a welcome change in the near future.
As always, the CIPP Policy Team will share any further details we receive with our members and the wider pay community.
Information provided in this news article may be subject to change. Please make note of the date of publication to ensure that you are viewing up to date information.