How to claim Mileage Allowance Relief (MAR)

Clear answer

If you use your own car, van, motorcycle or bicycle for work and your employer reimburses you at less than HMRC’s Approved Mileage Allowance Payment (AMAP) rates, you may be able to claim the shortfall as Mileage Allowance Relief (MAR). Passenger payment shortfalls do not qualify for MAR.

For tax year 2026/27 the car/van first-band rate is 55p per business mile (first 10,000), then 25p.

How MAR works (high level)

1. Add up your qualifying business miles by vehicle type for the tax year.
2. Multiply by the approved rates to get the approved amount.
3. Subtract mileage allowance payments your employer already paid for those miles.
4. If there is a positive balance, that amount may be claimable as MAR (tax relief on the shortfall, not a cash “mileage payment” from HMRC).

Keep records. When you claim, HMRC expects mileage logs that include the reason for each journey and the start and end postcodes.

Worked example (2026/27 car)

You drive 4,000 business miles in your own car. Your employer pays 30p per mile (£1,200). HMRC’s approved amount at 55p is £2,200.

• Approved amount: 4,000 × 55p = £2,200
• Employer paid: £1,200
• Potential MAR shortfall: £2,200 − £1,200 = £1,000

Tax relief is on that shortfall at your marginal rate — it is not an extra £1,000 cash payment. Confirm eligibility and how to claim on GOV.UK.

How to claim (routes)

• Use HMRC’s online employment expenses service if you are eligible and do not claim via Self Assessment for that year.
• If you complete a Self Assessment tax return, claim through the return instead.
• Postal claims of £2,500 or less per tax year may use form P87; claims over £2,500 need Self Assessment.

HMRC has noted that the online service is updated for the new car/van rates from 6 April 2026 — check GOV.UK before submitting a 2026/27 car/van claim.

Free tool

Estimate an AMAP / MAR shortfall and keep a browser-local trip log with our free calculator:

Open MileClaim UK mileage calculator

Prefer printable sheets and a reusable pack? Soft option: HMRC Mileage Claim Pack — £12 on Payhip (instant PDF). Free starter: CSV log + checklist.

FAQ

Do passenger payments count toward MAR?

No. The +5p passenger rate for cars/vans is separate; shortfalls on passenger payments do not qualify for MAR.

Can sole traders claim MAR?

MAR is an employee relief. Self-employed people usually claim business mileage through simplified expenses or actual costs on Self Assessment — see our sole trader mileage guide.