Are you getting the full 45p per mile you’re entitled to?
HMRC’s Approved Mileage Allowance Payments cover fuel, wear & tear, insurance and depreciation — at 45p per mile for the first 10,000 and 25p after. If your employer pays less, you can claim the difference.
| Band | Miles | Rate | Amount |
|---|---|---|---|
| First 10,000 miles | 8,000 | 45p | £3,600 |
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What you might calculate next
How it works
AMAP rates (unchanged since 2011)
Cars and vans: 45p for the first 10,000 business miles per tax year, 25p per mile after. Motorcycles: 24p per mile. Bicycles: 20p per mile. These cover all costs — fuel, insurance, depreciation, servicing — not just petrol.
Passenger rate
If you carry a fellow employee on a business journey, you can claim an additional 5p per mile per passenger. This is claimed by the driver, not the passengers.
Claiming the shortfall
If your employer pays less than AMAP, you can claim tax relief on the difference via Self Assessment (or a P87 form if your employer can't use payroll). Relief is at your marginal Income Tax rate — not NI.
Excess is taxable
If your employer pays MORE than AMAP, the excess is taxable employment income and is subject to both Income Tax and National Insurance.
EV note
AMAP rates apply regardless of fuel type — including electric vehicles you own. Company-owned EVs use the separate Advisory Electric Rate (AER) currently 9p/mile, which covers electricity only.