HMRC RATES 2026/27 · OFFICIAL
HMRC Fuel & Mileage Rates (2026/27)
Official HMRC business mileage and fuel reimbursement rates for the 2026/27 tax year. Covers AMAP allowances, AFR fuel rates, and tax treatment for business travel.
Approved Mileage Allowance Payments (AMAP)
Plus 5p per mile per passenger carried on business trips
AMAP rates are the maximum you can claim tax-free for business mileage in your own vehicle. These rates cover all running costs — fuel, insurance, servicing, depreciation, etc.
The rates apply per tax year (6 April to 5 April). Once you've driven 10,000 business miles in your car or van, the rate drops from 45p to 25p per mile for the remainder of that tax year.
Scotland special rules
In Scotland, there's no 10,000-mile threshold — you get 45p per mile for all business travel. This recognises the longer distances often required for business travel in Scotland.
What counts as business mileage?
- Travel between different work locations
- Visits to customers, suppliers, or business contacts
- Travel to temporary work locations (less than 24 months)
- Business-related training courses
Not business mileage: your normal commute from home to your regular workplace.
Advisory Fuel Rates (AFR) for company cars
If you drive a company car and pay for fuel yourself (then claim reimbursement), or if your employer pays for private fuel, use these AFR rates effective from 1 March 2026:
Petrol
Diesel
Electric vehicles
Next review: 1 June 2026
AMAP vs AFR: which rate applies to you?
Use AMAP rates if you:
- Drive your own car for business
- Use a lease car (but pay running costs)
- Want to claim the maximum tax-free allowance
- Are self-employed or claiming on your tax return
Use AFR rates if you:
- Drive a company car
- Pay for business fuel yourself (claim back)
- Get private fuel paid by employer (calculate benefit)
- Need fuel-only reimbursement rates
Practical examples
Example 1: Sales rep using own car
Sarah drives 15,000 business miles per year in her own car:
- First 10,000 miles: 10,000 × 45p = £4,500
- Remaining 5,000 miles: 5,000 × 25p = £1,250
- Total annual allowance: £5,750 (tax-free)
Example 2: Manager with company car
David has a company BMW 320d (1.9L diesel) and drives 500 business miles per month:
- Monthly reimbursement: 500 × 13p = £65
- Annual reimbursement: £780
Example 3: Consultant using own electric car
Emma drives her own Tesla Model 3 for business, mainly charging at home:
- AMAP rate applies: 8,000 miles × 45p = £3,600 per year
- This covers electricity, insurance, depreciation — everything
Calculate your business travel costs
Fuel Cost Calculator ↗
Calculate business mileage using current HMRC rates
Official HMRC Guidance ↗
Complete rates and thresholds from HM Revenue & Customs