Tax Relief for Employees and Self-Employed UK 2026/27 — What You Can Claim

Tax Relief on Work Travel Expenses — What Can You Claim? — UK 2026/27

PAYE employees can claim tax relief on travel expenses their employer does not reimburse. Find out what counts as a qualifying business journey, how to calculate your claim, and how to apply to HMRC in 2026/27.

Tax information is based on HMRC rules for the 2026/27 tax year. Tax rules can change — always verify current rates at GOV.UK. This is not tax advice. Consider consulting a qualified tax adviser for your personal situation.

Ordinary commuting is not tax-deductible — but business travel during your working day can be. PAYE employees who travel to temporary workplaces, client sites, or between locations can claim tax relief on unreimbursed expenses. Here is what qualifies and how to claim in 2026/27.

What You Can and Cannot Claim

Journey type Claimable?
Commute from home to regular workplace No — private expense
Travel from office to client site Yes
Travel to a temporary workplace (under 24 months) Yes
Travel between two workplaces in the same day Yes
Travel to a training course at a different location Yes
Detour from commute route for business Partly — only the extra distance
Commute by a different mode of transport No — still ordinary commuting

HMRC Approved Mileage Rates 2026/27

If you use your own car, van, motorcycle, or bicycle for business travel, you can claim tax relief at the HMRC approved mileage allowance payment (AMAP) rates:

Vehicle Rate per mile (first 10,000) Rate per mile (above 10,000)
Car or van 45p 25p
Motorcycle 24p 24p
Bicycle 20p 20p

These rates cover fuel, wear and tear, and running costs — you cannot claim these costs separately on top of the mileage rate.

If your employer pays you less than the AMAP rate, you can claim tax relief on the shortfall. For example, if your employer pays 20p/mile and the AMAP rate is 45p, you can claim relief on the 25p difference.

If your employer pays you the full AMAP rate, no further claim is possible.

The Temporary Workplace Rule

One of the most commonly missed claims is travel to a temporary workplace — a location you work at for a defined period.

A workplace is temporary if:

  • You attend it for fewer than 24 months continuously, AND
  • You spend no more than 40% of your working time there

Once a workplace becomes permanent (you have been or expect to be there for 24+ months), travel to it is treated as ordinary commuting and is no longer deductible.

Worked example: David is normally based at his company’s Manchester office. For 18 months, he is seconded to a client site in Leeds 3 days per week. He drives 40 miles each way.

  • 40 miles × 2 = 80 miles/day × 3 days = 240 miles/week
  • Employer pays 0p/mile (no car allowance)
  • AMAP claimable: 240 × 45p = £108/week → £5,616 over 18 months
  • Tax relief at 20% = £1,123 refund for David

Public Transport Claims

If you take trains, buses, taxis, or flights for qualifying business travel, you can claim the actual cost — not a mileage rate. Keep receipts. For PAYE employees:

  • Rail season tickets purchased specifically for a temporary workplace are claimable
  • Taxis to client meetings are claimable if not reimbursed
  • Parking fees at temporary or business locations are claimable

Overnight Travel and Subsistence

If a business trip requires an overnight stay, you can also claim:

  • Hotel or accommodation costs (actual cost, reasonable)
  • Meal costs (HMRC publishes benchmark meal subsistence rates — or actual cost with receipts)
  • Incidental overnight expenses (up to £5/night in UK, £10/night overseas)

Your employer may already reimburse these — you can only claim for what you have personally paid.

How to Claim — PAYE Employees

Online:

  1. Go to gov.uk/check-income-tax
  2. Select “Add a work expense”
  3. Enter travel expenses for the current year and up to 4 previous years
  4. HMRC adjusts your tax code or issues a refund

Form P87: Complete and post Form P87 (available at gov.uk) for employment expenses. Required if your claim is over £2,500 in a single year.

Keep records: Date, start and end point, business purpose, miles (if driving), and receipts (for public transport). HMRC can ask for evidence at any point.

Self-Employed Travel Claims

Sole traders can claim travel expenses on their Self Assessment return — the “wholly and exclusively for business” test applies. Home-to-business travel is still not deductible unless your home is genuinely your main place of work (e.g. a mobile hairdresser or plumber who travels from home to clients each day).

See our working from home tax relief guide, backdating PAYE tax relief, and professional subscriptions tax relief.

Sources

  1. HMRC — Tax relief for employees: travel
  2. HMRC — Approved mileage rates