HMRC's Approved Mileage Allowance Payments (AMAPs) are the rates at which self-employed individuals and employees can claim tax relief for using their own vehicle for business purposes. For cars and vans, the rate is 45 pence per mile for the first 10,000 business miles in a tax year, and 25 pence per mile thereafter. Maintaining an accurate mileage log is required to support any such claim.
What Are HMRC Approved Mileage Rates?
When a driver uses their own vehicle for work-related travel — rather than commuting — HMRC allows them to claim a deduction from their taxable income based on the miles driven. These deductions are calculated using HMRC's approved mileage allowance payment (AMAP) rates.
The rates are designed to cover the cost of fuel, oil, tyres, servicing, insurance, and depreciation attributable to business use. They are not reimbursements of actual cost; they are standardised rates that HMRC deems reasonable.
Current HMRC Approved Mileage Rates
The current approved mileage rates for private vehicles used for business purposes are:
- Cars and vans: 45p per mile for the first 10,000 business miles in the tax year; 25p per mile above 10,000 miles
- Motorcycles: 24p per mile
- Bicycles: 20p per mile
These rates apply to self-employed individuals claiming mileage as a business expense, and to employees whose employer pays less than the approved rate (in which case the employee can claim relief on the difference).
Note: these rates have been unchanged since 2011. Always verify the current rates at gov.uk before making a claim, as HMRC may update them.
What Counts as Business Mileage?
Not all mileage driven for work purposes qualifies under the AMAP rules. The key distinctions are:
- Qualifying business travel: Journeys made in the performance of duties — visiting clients, travelling between work sites, attending meetings away from a regular workplace. These journeys are eligible for mileage claims.
- Ordinary commuting: Travel between home and a permanent workplace is not eligible. HMRC does not consider this business travel.
- Temporary workplace travel: Travel from home (or a permanent workplace) to a temporary workplace may qualify, subject to HMRC's rules on temporary workplaces.
The distinction between qualifying business travel and commuting is significant. Incorrectly claiming commuting miles as business travel is an error HMRC takes seriously.
What a Mileage Log Must Contain
HMRC does not prescribe a specific format for mileage records, but requires that a log is kept contemporaneously and contains sufficient detail to support the claim. A compliant mileage log should include:
- Date of each journey
- Purpose of the journey (who was visited, what meeting was attended)
- Start and end location
- Miles driven for that journey
- Running total of business miles for the tax year
A log reconstructed from memory at year-end is not considered contemporaneous and is unlikely to withstand scrutiny in an HMRC enquiry. Records should be created at or near the time of each journey.
How Mileage Claims Are Made
Self-employed individuals: Business mileage is claimed as an allowable expense on the self-assessment tax return. The total qualifying miles are multiplied by the appropriate rate to produce the deductible amount. This is entered under travel expenses.
Employees: Where an employer reimburses mileage at a rate below the AMAP rate, the employee can claim tax relief on the difference using a P87 form (for claims under £2,500) or via self-assessment.
How to Keep an Accurate Mileage Log
Paper logs are acceptable but impractical for drivers with significant business mileage. Common approaches include:
- Notebook in the vehicle: Simple and immediate, but requires discipline to complete after every journey, and paper records can be lost or damaged.
- Spreadsheet: More structured than a notebook, and allows annual totals and tax calculations. Requires manual input after each journey.
- Vehicle management apps: Apps that include a mileage logging feature allow journeys to be categorised as business or personal at the time of travel, with running totals maintained automatically. AutoLog includes a trip logging function that allows UK drivers to record journeys with purpose categories, supporting the kind of contemporaneous record HMRC requires.
Important Notes
This guide provides general information about HMRC mileage rates and logging practices. Tax rules change and individual circumstances vary. Drivers with complex business travel arrangements, those employed through limited companies, or those uncertain about what qualifies should consult a qualified accountant or tax adviser.
Key Takeaways
- HMRC approved mileage rates are 45p/mile (first 10,000 miles) and 25p/mile thereafter for cars and vans
- Only genuine business travel qualifies — commuting to a permanent workplace does not
- A mileage log must be kept contemporaneously and include date, purpose, route, and miles per journey
- Self-employed drivers claim via self-assessment; employees claim via P87 or self-assessment
- Paper, spreadsheet, or app-based logs are all acceptable — the key requirement is accuracy and contemporaneity
- Always verify current HMRC rates at gov.uk before making a claim