Changes to Approved Mileage Allowance Payment (AMAP) and what it means for your business.

The Government has announced an increase to the Approved Mileage Allowance Payment (AMAP) rates for employees/Directors using their own vehicles for business travel.

Backdated to April 2026, the tax-free mileage rate for cars and vans will increase from 45p to 55p per mile for the first 10,000 business miles travelled in a tax year.


The change was announced as part of a wider package intended to support households and workers with rising living costs.
Ordinary commuting to and from your normal place of work does not qualify.

However, travelling between work locations, visiting clients, or driving between properties as part of your role generally will qualify.

Where an employer reimburses qualifying mileage at or below the approved rate, the payment can normally be made free of tax and National Insurance.

The previous 45p rate had remained unchanged since 2011, despite significant increases in fuel and running costs over that period.

For businesses with employees regularly using their own vehicles for work, this increase may provide both additional tax efficiency and welcome support with rising motoring costs.