NHS Mileage Allowance: Rates, What You Can Claim and Tax
Community and outreach staff can claim back a lot in mileage. Here is how the rates work and what you can and cannot claim.
Updated · 4 min read
Try it with your own numbersNHS Mileage Allowance CalculatorFor community nurses, health visitors, paramedics on rapid response and many therapy staff, business mileage adds up quickly. Claiming it correctly makes a real difference to your monthly budget. Here is how the Agenda for Change mileage scheme works.
The rates
The Agenda for Change car rates from January 2026 are:
| Miles in the year | Rate per mile |
|---|---|
| First 3,500 business miles | 56p |
| Each mile after 3,500 | 21p |
The year normally runs from April. A lower reserve rate applies if your employer offered you a lease car and you chose to use your own instead. These rates are reviewed during the year, so check your employer's current figures.
A worked example
Say you have already claimed 3,400 business miles this year and you now claim 200 more. The first 100 miles take you up to the 3,500 threshold and are paid at 56p. The other 100 are paid at 21p. Your claim is £56 plus £21, which is £77.
A community nurse who drives 60 business miles a week for 46 working weeks covers 2,760 miles, all under the threshold, and would claim about £1,545 over the year.
What counts as business mileage
Business mileage is travel you make as part of your job, such as:
- Visiting patients at home
- Travelling between clinics or sites during the day
- Going to meetings or training away from your normal base
What does not count is your normal commute between home and your usual base. If you go straight from home to a patient visit, most trusts only pay the miles beyond what your normal commute would have been. Check your trust's travel policy, because this varies.
Passengers and other costs
Some trusts pay a small extra amount per mile for carrying a colleague. Parking at visits and tolls are usually claimable with receipts. Fines are never claimable.
Tax on mileage
HMRC sets approved mileage rates for business travel in your own car: 45p a mile for the first 10,000 business miles in the tax year and 25p after that. Payments up to those rates are tax free.
Two things follow from that:
- The 56p rate is above HMRC's 45p rate. The extra 11p a mile for miles under 3,500 is taxable, and your employer usually deals with this through payroll.
- The 21p rate is below HMRC's rate. For miles where you are paid less than the approved rate, you can claim tax relief on the difference from HMRC, known as Mileage Allowance Relief.
If you drive a lot for work, the relief can be worth claiming. You can do it through your tax account or a Self Assessment return.
Keeping good records
Claims normally need the date, start and end points, purpose and miles for each journey. Most trusts use an online expenses system. Submit claims promptly, because many trusts will not pay claims older than three months.
Worked example: crossing the threshold
A district nurse has claimed 3,300 business miles by December and claims 400 more that month. The first 200 miles take her to 3,500 and are paid at 56p, which is £112. The other 200 are paid at 21p, which is £42. Her claim for the month is £154. From then on, every mile for the rest of the year is paid at 21p.
Lease cars
Many trusts offer lease cars to staff who travel a lot for work, often through salary sacrifice. If you have a lease car, mileage is paid at a lower rate that reflects the fuel cost only, because the car's running costs are already covered. If you were offered a lease car and turned it down, your employer may pay the reserve rate instead of the standard rate.
Common questions
Can I claim for travel to training? Usually yes, if the training is away from your normal base and required for your job. Check whether your trust expects you to use public transport where practical.
What if I use an electric car? Agenda for Change rates apply in the same way. HMRC's approved rates are the same for electric and petrol cars.
Can I claim for a bicycle or motorbike? Most trusts pay set rates for both. Ask your expenses team for the current figures.
Do I need business insurance? Yes. Your car insurance must cover business use. Normal social, domestic and commuting cover is not enough.
Common mistakes to avoid
- Claiming your normal commute as business mileage.
- Leaving claims so long that they are rejected under your trust's time limit.
- Not claiming Mileage Allowance Relief from HMRC for miles paid below the approved rate.
Work out a claim
The mileage calculator splits a claim between the two rates based on how many miles you have already claimed this year, and lets you change the rates to match your employer's current figures.
This guide explains the general rules for staff in England using 2026/27 figures. It is not financial advice. Your employer, payslip or NHS Pensions statement has the final word on your own pay.