What is Mileage Allowance Relief (MAR)?

HMRC's Approved Mileage Allowance Payment (AMAP) rates for business travel are 45p per mile for the first 10,000 miles and 25p per mile thereafter for cars and vans, with 24p for motorcycles and 20p for bicycles. Employees who use their own vehicle for business journeys can claim Mileage Allowance Relief (MAR) on the difference between HMRC's approved rate and any lower reimbursement their employer pays. Self-employed individuals can instead deduct the flat mileage rate directly from business profits without needing to track actual running costs.