Reference
Reference: UK Mileage and Subsistence Rates 2025/26
Reference for HMRC's approved mileage allowance (AMAP), advisory fuel rates for company cars, and benchmark scale rates for subsistence — useful for both employees and self-employed travellers.
Quick answers
What is the HMRC mileage rate 2025/26?
45p per mile for the first 10,000 business miles in a car or van, then 25p above. Motorbikes 24p, bicycles 20p, plus 5p per passenger if the passenger is also on a business journey. Payments at or below these rates (AMAP) are tax-free and don't need to be reported on a P11D.
What is the advisory electric rate?
Use HMRC’s advisory fuel rates for the journey date. Electric company cars have separate home- and public-charging rates; the old universal 7p figure is not current. https://www.gov.uk/guidance/advisory-fuel-rates
Approved Mileage Allowance Payments (AMAP)
Used when an employee or director uses their own vehicle for business travel.
| Vehicle | First 10,000 business miles | Above 10,000 |
|---|---|---|
| Car or van | 45p | 25p |
| Motorcycle | 24p | 24p |
| Bicycle | 20p | 20p |
| Passenger payment | +5p per passenger | +5p per passenger |
Payments at or below these rates are tax-free and don't go on a P11D. Payments above are taxable on the excess.
If the employer pays less than AMAP, the employee can claim Mileage Allowance Relief for the shortfall via their Self Assessment or a P87 form.
Advisory Fuel Rates (AFR) — company cars
Used to reimburse fuel for business miles in a company car (or for the employee to repay private fuel and avoid the fuel benefit charge). HMRC reviews quarterly.
Use the rate for the journey date in HMRC’s quarterly advisory fuel tables. Petrol, diesel and LPG use their respective engine-size bands. Electric company cars now have separate home- and public-charging rates; do not use the old universal 7p figure. Hybrid cars use the relevant petrol or diesel rate.
Benchmark scale rates for subsistence
Tax-free if:
- The travel qualifies as business travel
- The employee was away from the normal workplace for the time minimum
- The employer has a checking system for the qualifying conditions
| Period away from base | Maximum tax-free |
|---|---|
| 5+ hours | £5 |
| 10+ hours | £10 |
| 15+ hours and travel ongoing past 8pm | £25 |
These are maximums, not entitlements; staff must actually have incurred the expense.
Overseas subsistence — bespoke scale rates
HMRC publishes worldwide subsistence rates by city — used in lieu of receipts. Updated periodically.
Working from home
| Method | Allowance 2025/26 |
|---|---|
| Employer payment for qualifying homeworking | £6/week (£26/month) |
| Actual costs | Apportion utility bills by business use |
For self-employed (sole trader / partnership), HMRC's simplified flat rate by hours per month:
| Hours per month | Flat rate |
|---|---|
| 25–50 | £10 |
| 51–100 | £18 |
| 101+ | £26 |
Cycle to work
- Tax-free hire of bicycles and safety equipment up to a limit (typically £1,000 unless the scheme is operated by a financial provider with FCA exemption)
- Cycles must be used mainly for qualifying journeys (commuting or business)
Practical reminders
- Keep a business mileage log: date, start, end, purpose, miles
- Commuting (home → permanent workplace) is not business travel
- A temporary workplace may qualify; the 24-month rule includes expected attendance and the extent of duties there, so a short assignment is not automatically qualifying
- For self-employed travellers using simplified expenses, the permitted simplified-expense vehicle rates apply; the employee bicycle and passenger rates are not automatically available
When to use what
| Situation | Use |
|---|---|
| Employee uses own car for business | AMAP (45p / 25p) |
| Reimburse fuel cost in a company car | AFR by engine size, AER for EV |
| Subsistence on a UK business trip | Benchmark scale rates or actual receipts |
| Working from home regularly | Flat rate or actual costs |
General guidance, not tax advice. Speak to a qualified accountant for advice tailored to your situation. Figures relate to the 2025/26 UK tax year. Source: HMRC, gov.uk.
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