# Mileage Allowance Relief (UK)

**Category:** [HMRC Mileage Guides (UK)](https://community.mycartracks.com/c/hmrc-mileage-guides-uk/53)
**Created:** 2026-05-12 07:36 UTC
**Views:** 7
**Replies:** 0
**URL:** https://community.mycartracks.com/t/mileage-allowance-relief-uk/364

---

## Post #1 by @MyCarTracks_support

Mileage Allowance Relief, or MAR, is the tax relief an employee may be able to claim when they use their own vehicle for qualifying business travel and their employer pays less than HMRC's approved mileage amount. GOV.UK's [employee business mileage rules](https://www.gov.uk/expenses-and-benefits-business-travel-mileage/rules-for-tax) explain that the unused balance between the approved amount and the employer's Mileage Allowance Payments can create a MAR claim.

For the 2026/27 tax year, the approved rates are 45p per mile for the first 10,000 business miles in a car or van and 25p per mile after that. Motorcycles are 24p per mile, and bicycles are 20p per mile. MAR gives tax relief on the unpaid approved amount. It is not a repayment of every pound your employer did not reimburse.

This article is educational and is not tax, payroll, legal, employment, or financial advice. HMRC treatment can change by tax year, vehicle type, payment type, employment status, and the facts of the journey. Check the official guidance or speak with a qualified adviser before relying on a calculation.

![Mileage Allowance Relief workflow for UK business miles, MAPs, MAR, and records](upload://8slneZBHrM4QjXpyGvQVto3nGyj.svg)

## Quick answer

You may be able to claim Mileage Allowance Relief if all of these apply:

- you are an employee
- you used your own car, van, motorcycle, or bicycle for qualifying business travel
- your employer paid less than the approved amount for that vehicle kind in the tax year, or paid nothing
- you paid tax in the year you are claiming for
- you have mileage records that support the journey, business purpose, and mileage

The basic calculation is:

| Step | Calculation |
| --- | --- |
| Approved amount | qualifying business miles x HMRC approved mileage rate |
| Unused amount | approved amount minus employer Mileage Allowance Payments |
| Tax relief | unused amount x your tax rate for the year, limited by tax paid |

If your employer pays exactly the approved amount, there is no MAR to claim for that vehicle kind and tax year. If your employer pays more than the approved amount, the excess is taxable as normal pay instead.

## What Mileage Allowance Relief means

MAR sits beside Mileage Allowance Payments, usually shortened to MAPs. MAPs are the payments an employer makes when an employee uses their own vehicle for business journeys. The approved amount is the tax-free benchmark for those payments.

MAR deals with the shortfall. If the approved amount for your business miles is £2,250 and your employer paid £1,500, the unused amount is £750. The MAR claim is based on that £750. A basic-rate taxpayer would usually be looking at tax relief of 20% of the unused amount, not a £750 cash payment from HMRC.

The technical test is narrow: you need to use your own qualifying vehicle for business travel and receive less in MAPs than the approved amount for that kind of vehicle. HMRC sets out that MAR test in its [Employment Income Manual](https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim31330).

## Which employees can claim MAR

MAR is an employee tax-relief route. It can apply when you use a vehicle you bought, leased, or otherwise provide yourself for work journeys that qualify as business travel.

You can usually check MAR if:

- your employer pays a lower mileage rate than the approved HMRC rate
- your employer pays no mileage allowance
- your employer pays a monthly motoring amount but it does not cover the approved amount for supported business miles
- you receive a taxable car allowance and separately use your own vehicle for business miles

The claim still depends on the records and the journey. Travel between home and a permanent workplace is usually ordinary commuting, not business mileage. HMRC's [ordinary commuting guidance](https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim32055) separates that from travel to a temporary workplace or other business travel where the facts support the claim.

## When you cannot claim MAR

You normally cannot claim MAR when:

- your employer paid the full approved amount for the same vehicle kind in that tax year
- your employer paid more than the approved amount for the same vehicle kind in that tax year
- the journey was ordinary commuting
- you did not pay tax in the year you want to claim for
- someone paid back all of the work-related expense
- the claim is for passenger payments rather than your own vehicle mileage
- you are trying to claim employee MAR for self-employed business mileage

The same vehicle-kind rule matters. You cannot be taxed on excess MAPs and also claim MAR for the same kind of vehicle in the same tax year. Cars and vans are treated as one kind, motorcycles as another, and cycles as another.

## HMRC rates used for MAR in 2026/27

MAR uses the same approved mileage rates as employee MAPs:

| Vehicle type | First 10,000 business miles in the tax year | Each business mile after 10,000 |
| --- | ---: | ---: |
| Cars and vans | 45p | 25p |
| Motorcycles | 24p | 24p |
| Bicycles | 20p | 20p |

Cars and vans share the 10,000-mile threshold. If you use two cars for the same employment in the same tax year, the business miles are counted together for that threshold. Electric and hybrid cars use the car and van rates.

For a rate-focused breakdown, read [Current HMRC Mileage Rates (UK)](https://community.mycartracks.com/t/current-hmrc-mileage-rates-uk/361). If the claim relates to an older tax year, use [Historical HMRC Mileage Rates (UK)](https://community.mycartracks.com/t/historical-hmrc-mileage-rates-uk/362). For the employer payment side, read [Mileage Allowance for Employees (UK)](https://community.mycartracks.com/t/mileage-allowance-for-employees-uk/363).

## How to calculate Mileage Allowance Relief

Start with your qualifying business miles for the tax year. Then apply the approved rate for the vehicle kind and subtract what your employer paid for those miles.

Example: you drive 4,500 qualifying business miles in your own car during 2026/27. Your employer pays 30p per mile.

| Calculation | Amount |
| --- | ---: |
| Approved amount: 4,500 miles x 45p | £2,025 |
| Employer MAPs: 4,500 miles x 30p | £1,350 |
| Unused approved amount | £675 |

The MAR claim is based on the £675 unused amount. If you pay Income Tax at 20%, the tax relief would usually be £135 before any wider tax-code, tax-paid, or claim-route details are considered.

If your car or van business mileage goes above 10,000 miles in the tax year, split the calculation:

| Calculation | Amount |
| --- | ---: |
| 10,000 miles x 45p | £4,500 |
| 2,000 miles x 25p | £500 |
| Approved amount for 12,000 car or van business miles | £5,000 |

Then subtract the MAPs your employer paid for those car or van business miles.

## If your employer pays nothing

If your employer pays no MAPs for qualifying business miles in your own vehicle, the full approved amount may be the unused amount for MAR.

Example: you drive 2,000 qualifying business miles in your own car during 2026/27 and receive no mileage payment.

| Calculation | Amount |
| --- | ---: |
| Approved amount: 2,000 miles x 45p | £900 |
| Employer MAPs | £0 |
| Unused approved amount | £900 |

The tax relief is based on the £900 unused amount. It is still limited by the tax you paid in the year you are claiming for.

## If your employer pays more than the approved amount

There is no MAR where the employer has already paid more than the approved amount for that vehicle kind and tax year. The excess is taxable as normal pay.

Example: the approved amount for your car business mileage is £2,025, but your employer pays £2,250. The £225 excess is the part that payroll needs to treat as taxable pay. That does not create a MAR claim for the same car or van mileage.

National Insurance uses its own relevant motoring expenditure and qualifying amount rules. That is separate from MAR. For the full employee payment treatment, use [Mileage Allowance for Employees (UK)](https://community.mycartracks.com/t/mileage-allowance-for-employees-uk/363).

## Company cars and fuel or electricity

MAR for your own vehicle is different from a company car claim. If you use a company car for business trips and pay for fuel or electricity yourself, you may be able to claim tax relief on the unreimbursed business fuel or electricity cost under GOV.UK's [employee vehicle tax relief guidance](https://www.gov.uk/tax-relief-for-employees/vehicles-you-use-for-work).

Keep this separate from private-vehicle MAR. With your own car, the approved mileage rate covers the cost of owning and running the vehicle for work, so you cannot also claim fuel, electricity, vehicle tax, MOTs, or repairs through the same route. With a company car, the question is the business fuel or electricity cost you personally paid and were not reimbursed for.

If your issue is a taxable car allowance rather than a company car, the next article to read is [Car Allowance for Employees (UK)](https://community.mycartracks.com/t/car-allowance-for-employees-uk/367).

## Self-employed mileage is not MAR

Self-employed mileage claims use different rules. Sole traders and eligible partnerships may be able to use simplified vehicle expenses or actual vehicle costs with a business-use adjustment. They do not claim employee MAR on an employer shortfall.

If you are both employed and self-employed, keep the records separate. Employee business miles and self-employed business miles can have similar pence-per-mile figures, but they do not go through the same claim route.

Use [Self-Employed Mileage Allowance (UK)](https://community.mycartracks.com/t/self-employed-mileage-allowance-uk/366) when the mileage belongs to your own trade rather than employment.

## How to claim MAR

If you complete a Self Assessment tax return, you must claim employee job-expense tax relief through that tax return.

If you do not complete Self Assessment, you can usually use the GOV.UK job-expenses claim route or form P87. For a postal P87 claim, the current [GOV.UK guidance](https://www.gov.uk/guidance/send-an-income-tax-relief-claim-for-job-expenses-by-post-or-phone) generally limits the route to claims within four years from the end of the tax year, no more than £2,500 for each tax year, and claimants who paid tax in the year claimed.

Before you claim, prepare:

- business mileage by tax year and vehicle kind
- employer mileage payments received for those miles
- the approved-rate calculation
- mileage logs for the journeys
- start and end postcodes where a P87 vehicle claim needs them
- separate records for each employment if you are claiming for more than one job

For a workflow article focused on the claim steps, use [How to Claim Mileage Allowance Relief From HMRC](https://community.mycartracks.com/t/how-to-claim-mileage-allowance-relief-from-hmrc/365).

## Records HMRC may ask for

Do the recordkeeping at journey level. A monthly mileage total is weak on its own because it does not show why each journey qualified.

For a MAR claim, keep:

- date of the journey
- start and end point
- start and end postcodes where needed for P87 evidence
- reason or business purpose for the journey
- vehicle used
- miles driven
- employer payment received for the journey or claim period
- tax year and approved rate used

For postal P87 claims involving vehicles, HMRC asks for copies of mileage logs showing the reason for every journey and the start and end postcodes. If you claim for more than one employment, keep a separate mileage log for each employment.

## How MyCarTracks helps with MAR records

MyCarTracks can help you build the mileage record before the tax question appears. You can capture trips automatically, classify business and personal journeys, add purposes, keep vehicle records, and export reports for a MAR calculation or employer review.

That matters most when your employer pays a low mileage rate or no mileage rate. The MAR calculation is simple only after the business-mile record is complete.

Use [MyCarTracks automatic mileage tracking](https://www.mycartracks.com/products/automatic-mileage-tracking) if you want the log built as trips happen.

<div data-theme-mycartracks-app-download-banner-slot></div>

## Common MAR mistakes

- claiming the full employer shortfall instead of tax relief on the unused approved amount
- using 45p per mile for ordinary commuting
- claiming MAR after the employer already paid the full approved amount
- mixing company-car fuel or electricity relief with private-vehicle MAR
- treating a car allowance as automatic tax-free MAPs
- trying to claim passenger-payment shortfalls from HMRC
- using only estimated miles without journey records
- mixing employee MAR with self-employed simplified expenses
- forgetting that cars and vans share one 10,000-mile threshold for the tax year

## Mileage Allowance Relief FAQ

### Can I claim MAR if my employer pays 30p per mile?

You may be able to claim MAR on the difference between the approved amount and what your employer paid, if the journeys qualify and you meet the employee tax-relief conditions. For a car or van under 10,000 business miles in 2026/27, a 30p employer rate leaves a 15p-per-mile unused approved amount.

### Do I get the full mileage shortfall back from HMRC?

No. MAR gives tax relief on the unused approved amount. If the unused amount is £675 and your tax rate is 20%, the tax value would usually be £135, subject to your wider tax position and the tax you paid in that year.

### Can I claim MAR if my employer pays no mileage allowance?

Yes, if the business journeys qualify, you used your own qualifying vehicle, you paid tax in the year, and your records support the claim. The unused amount would normally be the full approved amount for those business miles.

### Can I claim MAR for commuting?

Usually no. Travel between home and a permanent workplace is ordinary commuting. Travel to a temporary workplace or between workplaces may qualify, but the facts need to support the business-travel treatment.

### Can I claim MAR for a company car?

Not under the own-vehicle MAR rules. If you use a company car and personally pay for fuel or electricity for business trips, you may be able to claim employee tax relief on the business fuel or electricity cost that your employer did not reimburse.

### Can I claim passenger payments from HMRC?

No. Passenger payments are an employer payment for carrying fellow employees in your own car or van on business journeys. The [passenger payment rules](https://www.gov.uk/expenses-and-benefits-business-travel-mileage/passenger-payments) do not give a MAR equivalent for unpaid or underpaid passenger payments.

## What to read next

- [Mileage Allowance for Employees (UK)](https://community.mycartracks.com/t/mileage-allowance-for-employees-uk/363)
- [Current HMRC Mileage Rates (UK)](https://community.mycartracks.com/t/current-hmrc-mileage-rates-uk/361)
- [Historical HMRC Mileage Rates (UK)](https://community.mycartracks.com/t/historical-hmrc-mileage-rates-uk/362)
- [How to Claim Mileage Allowance Relief From HMRC](https://community.mycartracks.com/t/how-to-claim-mileage-allowance-relief-from-hmrc/365)
- [Car Allowance for Employees (UK)](https://community.mycartracks.com/t/car-allowance-for-employees-uk/367)
- [HMRC Mileage Guide (UK)](https://community.mycartracks.com/t/hmrc-mileage-guide-uk/360)

## Sources

- [GOV.UK: Expenses and benefits - business travel mileage for employees' own vehicles, rules for tax](https://www.gov.uk/expenses-and-benefits-business-travel-mileage/rules-for-tax)
- [GOV.UK: Claim tax relief for your job expenses - vehicles you use for work](https://www.gov.uk/tax-relief-for-employees/vehicles-you-use-for-work)
- [HMRC Employment Income Manual EIM31330: Mileage Allowance Relief](https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim31330)
- [GOV.UK: Claim tax relief for your job expenses by post using form P87](https://www.gov.uk/guidance/send-an-income-tax-relief-claim-for-job-expenses-by-post-or-phone)
- [GOV.UK: Claim tax relief for your job expenses](https://www.gov.uk/tax-relief-for-employees)
- [HMRC Employment Income Manual EIM32055: ordinary commuting](https://www.gov.uk/hmrc-internal-manuals/employment-income-manual/eim32055)
- [GOV.UK: Expenses and benefits - business travel mileage, passenger payments](https://www.gov.uk/expenses-and-benefits-business-travel-mileage/passenger-payments)

---


**Canonical:** https://community.mycartracks.com/t/mileage-allowance-relief-uk/364
**Original content:** https://community.mycartracks.com/t/mileage-allowance-relief-uk/364