Approved mileage rates

Under the Approved Mileage Allowance Payment (AMAP) scheme, employers can make tax-free mileage payments to their employees who use their own vehicles for business travel, as long as the amount paid does not exceed the approved amount. This is the total number of business miles in the tax year multiplied by the approved rate for the vehicle in question.

For cars and vans, a higher rate is payable for the first 10,000 business miles in the year. The rate was increased from 45p to 55p with effect from 06^th April 2026. The rate applying to business miles in excess of 10,000 business miles in the tax years remains at 25p per mile, while the rates for motor cycles and bicycles remain at 24p and 20p per mile respectively.

A similar system applies for National Insurance with the key difference that the higher rate for cars and vans is used for all business miles in the tax year, not just the first 10,000.