What is Mileage Allowance Relief?

For employees who use their own car, van, motorbike or bicycle for work journeys.

Applies to: England, Scotland, Wales, Northern Ireland Last checked against official sources: 6 October 2026

Mileage Allowance Relief (MAR) is tax relief you can claim if you use your own vehicle for work and your employer pays you less than HMRC's approved mileage rate.

From 6 April 2026, the approved rate for cars and vans is 55p a mile for the first 10,000 business miles, then 25p.
Motorcycles are 24p a mile and bicycles 20p.
You claim relief on the gap between the approved amount and what your employer paid.
The relief is worth your rate of tax on that gap, for example 20%.
If you fill in a Self Assessment return, you must claim through that.

Key facts

Cars: 55p a mile from April 2026
25p after 10,000 miles
Bikes 20p, motorcycles 24p
Claim the gap from employer pay

What Mileage Allowance Relief is

If you use your own vehicle for business journeys, your employer can pay you a mileage allowance. HMRC sets approved mileage rates. If your employer pays you less than the approved amount, you can claim tax relief on the difference. This is called Mileage Allowance Relief (MAR).

If your employer pays more than the approved amount, the extra is taxed as pay.

Approved mileage rates for 2026/27

The car and van rate went up on 6 April 2026.

Vehicle	First 10,000 business miles	Over 10,000 business miles
Car or van	55p a mile (45p before 6 April 2026)	25p a mile
Motorcycle	24p a mile	24p a mile
Bicycle	20p a mile	20p a mile

How the relief is worked out

Add up your business miles for the tax year.
Work out the approved amount using the rates above.
Take away what your employer paid you for those miles.
The amount left is what you claim relief on.
Your tax saving is that amount multiplied by your rate of tax.

Worked example

Sam drives 12,000 business miles in his own car in 2026/27. His employer pays him 30p a mile.

Step	Sum	Amount
Approved amount, first 10,000 miles	10,000 x 55p	£5,500
Approved amount, next 2,000 miles	2,000 x 25p	£500
Total approved amount		£6,000
Paid by employer	12,000 x 30p	£3,600
Amount to claim relief on	£6,000 minus £3,600	£2,400
Tax saving for a basic rate (20%) taxpayer	20% of £2,400	£480

If his employer paid nothing, he could claim relief on the full £6,000.

Passengers

Your employer can pay up to 5p per passenger per business mile for carrying colleagues who are also on a work journey. You cannot claim relief if you get less than 5p, or nothing.

Who cannot claim

You cannot claim if your employer already pays you back in full, at or above the approved rate.

How to claim

If you fill in a Self Assessment tax return: you must claim through your return.
Otherwise: claim online on GOV.UK, or use the postal form.

For the current tax year, HMRC usually changes your tax code so you pay less tax. For earlier years, it either changes your tax code or sends you a refund.

Keep a record of your business journeys and miles, and what your employer paid.

Related guides

Where these figures come from

Get it done

This takes you to the official service, which is free to use.

Claim tax relief for job expenses

Common questions

What was the mileage rate before April 2026?

For cars and vans it was 45p a mile for the first 10,000 business miles, then 25p.

Can I claim relief for carrying passengers?

No. Passenger payments can be paid tax free up to 5p a mile, but there is no relief if you get less than 5p or nothing.

Official sources

1.Expenses and benefits: business travel mileage, rules for tax (GOV.UK)www.gov.uk/expenses-and-benefits-business-travel-mileage/rules-for-tax
2.Travel: mileage and fuel rates and allowances (HMRC)www.gov.uk/government/publications/rates-and-allowances-travel-mileage-and-fuel-allowances/travel-mileage-and-fuel-rates-and-allowances
3.Claim tax relief for your job expenses (GOV.UK)www.gov.uk/tax-relief-for-employees

Checked against GOV.UK on 6 October 2026

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