Approved Mileage Allowance Payments (AMAPs), Mileage Allowance Relief (MAR) and self-employed mileage  

 

Increases to AMAPs, MAR, and self-employed mileage will be effective (backdated) from 6 April 2026 for the 2026 to 2027 tax year. This move is in order to recognise the increased costs of running vehicles. The 2026/27 rates are:

• increase to 55 per mile for the first 10,000 miles
• remain at 25p per mile for mile 10,001 and over

Employers may want to increase the amount they reimburse their employees for business mileage for the first 10,000 miles, in line with the new rates, however, this is a cap on the amount that can be paid tax free and is not a compulsory level. Where an employee receives less than the maximum rate per mile from their employer, they can claim tax relief on the difference via HMRC.

Employers who reimbursed their employees above the old rates, where income tax and National Insurance contributions have been deducted, may want to consider re-running their payroll for April and May to account for the increase to AMAPs.

If you have any questions regarding this, please get in touch with Jacqui Lawman or contact us.