Tax Planning
What the New Approved Mileage Allowance Payment Increase Means for Remote and Traveling Workers
The AMAP rate has risen sharply for the first 15 years—understanding eligibility, tax relief, and how this helps you or your business recover costs when using a vehicle for work.
By NomadicTax Research Team • 5-8 min read • July 9, 2026
## Overview of the AMAP Increase
- From **6 April 2026**, the AMAP (Approved Mileage Allowance Payment) rate for cars and vans has increased from **45p to 55p per business mile** for the first 10,000 miles in a tax year. ([commonslibrary.parliament.uk](https://commonslibrary.parliament.uk/research-briefings/cbp-9742/?utm_source=openai))
- Rates above 10,000 miles remain at **25p per mile**. Motorcycle and bicycle rates also stay the same. ([commonslibrary.parliament.uk](https://commonslibrary.parliament.uk/research-briefings/cbp-9742/?utm_source=openai))
- For employees, this is a **non-taxable reimbursement**—if the employer pays this approved amount or less. Amounts above it are taxable. ([gov.uk](https://www.gov.uk/expenses-and-benefits-business-travel-mileage/rules-for-tax?utm_source=openai))
## Who Benefits Most
- **Remote workers**, **delivery drivers**, **sales reps**, or anyone regularly using a personal vehicle for business trips.
- Self-employed individuals who use their own vehicle for work but appropriately log business miles—for whom this rate increases allowable deductions or relief.
## Actionable Advice
1. **Track business mileage carefully.** Document trips and dates to prove in case of HMRC inquiry. Keep one log per vehicle.
2. **Ensure employer reimbursements follow approved rates.** Employers should check payroll systems are updated. An underpayment may force employees to claim relief through Self Assessment.
3. **Self-employed individuals** should use the increased rates when calculating expenses. Note: rates are based on business use—for joint or mixed purposes make sure to apportion correctly.
4. **Budget for changes.** Employers may face increased payroll costs if reimbursing under the new approved rates.
## Practical Example
- Sally, a sales rep, drives 9,000 business miles in a VW transporter. Under old rules (45p), tax-free reimbursement would be £4,050. Under the new rate (55p), it is **£4,950**— an extra **£900** in her pocket (or cost for employer).
## Caveats and Compliance Risks
- If reimbursements exceed the approved amount (55p for first 10,000 miles), the excess is taxable and subject to NICs.
- Make sure logs record purpose, date, distance, vehicle type. Lack of detail may lead HMRC to disallow relief.
- Self-employed must ensure business use is genuine—if HMRC investigates, personal use must be separated.
## Bottom Line
This AMAP increase is a welcome boost for people using their vehicles for business, especially in sectors with high travel. Ensure systems and expense policies are updated, documentation is in place, and you claim what you're entitled to without overstepping compliance boundaries.