See what you are short if your employer pays less than the approved rate
If you use your own vehicle for work and get paid below the HMRC approved mileage amount, you may be able to claim tax relief on the difference. That difference is called Mileage Allowance Relief.
How Mileage Allowance Relief works
HMRC sets approved mileage rates for employees who use their own vehicle for business travel. Your employer can pay up to that approved amount tax-free. If they pay less, or nothing, you may claim relief on the unused balance.
For cars and vans in 2026/27 the approved rate is 55p for the first 10,000 business miles in the tax year and 25p after that. In 2025/26 the first-band rate was 45p. Motorcycles stay at 24p and bicycles at 20p.
Keep a clear mileage log. HMRC asks for the reason for each journey and the start and end postcodes when you claim. Download a ready-made mileage log template.
Official guidance: Claim tax relief for vehicles you use for work and mileage allowance payment rules.
Quick answers
What is Mileage Allowance Relief?
Tax relief you may claim when you use your own vehicle for work and your employer pays less than the HMRC approved mileage amount, or pays nothing.
How do I claim?
Through HMRC. Many employees claim online for job expenses. If you already complete a Self Assessment return, claim there instead. This site does not submit claims for you.
Does this include commuting?
Ordinary travel between home and a permanent workplace does not usually count. Temporary workplaces and journeys between work sites usually do.