If you drive for work in the UK, knowing the 2026 mileage rates is the difference between claiming what you're owed and quietly losing money. The headline figure of 45p per mile hasn't changed, but the detail matters.
Quick answer: For your own car, HMRC allows 45p per mile tax-free for the first 10,000 business miles a year, then 25p after that. Company car drivers use Advisory Fuel Rates instead, which vary by engine size, fuel type and are updated quarterly.
Using your own car: the 45p per mile rule
If you use your personal car for business journeys, your employer can reimburse you using the Approved Mileage Allowance Payment (AMAP) rates. These are designed to cover fuel, wear, insurance and depreciation, not just petrol.
| Vehicle | First 10,000 miles | Over 10,000 miles |
|---|---|---|
| Cars and vans | 45p per mile | 25p per mile |
| Motorcycles | 24p per mile | 24p per mile |
| Bicycles | 20p per mile | 20p per mile |
These are the maximum tax-free amounts. If your employer pays the full rate, there's no tax to worry about. If they pay less, you can claim the difference back.
Claiming Mileage Allowance Relief
If your employer pays below 45p per mile, you're entitled to claim tax relief on the shortfall. For example, if you drive 8,000 business miles and your employer only pays 30p per mile, you can claim relief on the 15p difference, which is 8,000 × 15p = £1,200 of allowable expense.
You claim this through self assessment or a P87 form. Keep a mileage log with dates, journeys and purposes to back up your claim.
Company car drivers: Advisory Fuel Rates
If you drive a company car and your employer pays for fuel, different rules apply. HMRC publishes Advisory Fuel Rates (AFRs) every quarter to cover the cost of business fuel without it being treated as a taxable benefit.
AFRs depend on:
- Fuel type (petrol, diesel or LPG)
- Engine size (banded, e.g. up to 1400cc, 1401-2000cc, over 2000cc)
The rates are reviewed in March, June, September and December, and they move with pump prices. Because they change four times a year, always check the current figures on GOV.UK rather than relying on an old rate. To sense-check whether the AFR matches what you're actually paying at the pump, find the cheapest fuel near you and compare.
Advisory Electricity Rate for EVs
Company EV drivers have their own figure, the Advisory Electricity Rate (AER), expressed in pence per mile and updated quarterly. It reflects average domestic electricity costs and EV efficiency. As with AFRs, check the latest published rate before submitting a claim.
How to work out what you can claim
The maths is straightforward once you know which scheme applies to you.
Own car example: 12,000 business miles in the tax year.
| Portion | Miles | Rate | Amount |
|---|---|---|---|
| First 10,000 | 10,000 | 45p | £4,500 |
| Remaining | 2,000 | 25p | £500 |
| Total | 12,000 | £5,000 |
Company car example: Multiply your business miles by the relevant AFR for your engine size and fuel type. If you do 1,000 business miles and the AFR is, say, 14p per mile, you'd claim £140 for that period.
Our fuel cost calculator is handy for checking your real fuel cost per mile against the rate you're being paid, so you can see whether you're actually out of pocket.
Record-keeping that survives an HMRC check
Whatever scheme you're on, good records protect your claim:
- Log every business journey with date, start and end points, mileage and purpose.
- Separate commuting from business travel, as ordinary commuting usually doesn't qualify.
- Keep fuel receipts if you're a company car driver, especially for VAT purposes.
- Note the rate used for each claim period, since AFRs change quarterly.
- Reconcile annually so nothing slips through the cracks.
Tips to make your mileage go further
- Fill up at the cheapest pump. Even a few pence per litre adds up over thousands of business miles. The national fuel price dashboard shows where prices are heading.
- Plan efficient routes. Fewer miles means lower costs and simpler claims, our journey planner helps you map them out.
- Compare areas if you travel widely. Prices differ by region, so you can compare two areas to plan where to refuel.
Claim what you're owed
The 2026 mileage rules reward drivers who keep good records and pay attention to the detail. Whether you're on the 45p AMAP rate or quarterly Advisory Fuel Rates, make sure the money you're paid actually covers your costs. Start by checking real pump prices, find the cheapest fuel near you and run the numbers with our fuel cost calculator.
Frequently Asked Questions
What is the HMRC mileage rate in 2026?
The Approved Mileage Allowance Payment for using your own car is 45p per mile for the first 10,000 business miles in the tax year, then 25p per mile above that.
What is the 45p per mile rule?
If you use your own car for work, your employer can pay you up to 45p per mile tax-free for the first 10,000 business miles each tax year, dropping to 25p per mile thereafter.
What are advisory fuel rates for company cars?
Advisory Fuel Rates are set by HMRC and cover fuel costs for business mileage in a company car. They vary by engine size and fuel type and are updated quarterly.
Can I claim mileage if my employer pays less than 45p?
Yes. If your employer pays below the approved rate, you can claim Mileage Allowance Relief from HMRC on the difference through your tax return or a P87 form.
What is the company car electric mileage rate in 2026?
HMRC publishes an Advisory Electricity Rate for company EVs, expressed in pence per mile and updated quarterly to reflect electricity costs. Check the latest figure on GOV.UK.