Claiming the correct tax relief for work mileage
Do you use your own vehicle for business journeys? If so, your employer may pay you Mileage Allowance Payments (MAPs). Helpfully, these payments can stay tax-free up to HMRC’s approved amount. Essentially, you calculate this by multiplying business miles by the relevant rate per mile.
The approved mileage rates
Now, the rates changed recently. Indeed, new figures took effect on 6 April 2026. Specifically, the approved rate for cars and vans rose to 55p per mile. Previously, it stood at 45p. However, this higher rate applies only to the first 10,000 business miles. Above this threshold, the rate remains 25p per mile. Meanwhile, other rates stayed the same:
- motorcycle mileage remains at 24p per mile
- bicycle mileage remains at 20p per mile
When your employer pays more or less
So, what happens if payments differ from the approved amount? Firstly, consider an employer who pays more. In that case, they must report the excess to HMRC. Furthermore, they must tax it through payroll. Secondly, consider an employer who pays less. Then, you may claim Mileage Allowance Relief on the unused balance.
National Insurance rules
Importantly, separate National Insurance rules also apply. Sometimes, employers must pay Class 1 National Insurance on higher amounts. Specifically, this applies above the qualifying amount. However, no National Insurance is due below the threshold.
Carrying passengers
Interestingly, you can claim extra for carrying colleagues. In particular, you may receive 5p per passenger per business mile. However, this applies only to fellow employees. Moreover, the journey must count as work travel for them too. Nevertheless, some restrictions apply. For example, only payments specifically for carrying passengers count. Additionally, you get no relief if you receive less than 5p or nothing at all.
Speak to our team
Are you confident you are claiming the correct tax relief for work mileage? If not, we can help. Ultimately, our experts will make sure you claim every penny you are owed. So, contact us today for tailored advice.
