Updated October 2026
P87 form: claiming mileage tax relief as an employee
The P87 is how an employee claims tax relief on business mileage — and other job expenses — through PAYE. Since October 2024 HMRC will not process one without evidence, so for mileage the form is the easy part: the mileage log is what gets the claim paid.
Who can use the P87?
| Your situation | How to claim |
|---|---|
| Employee, no Self Assessment, claim up to £2,500 | P87 — online or by post |
| Claim over £2,500 | Self Assessment tax return |
| You already file Self Assessment | On your return — not a P87 |
| Self-employed | Simplified expenses on Self Assessment |
You can claim for the current tax year and the four previous ones. For the current year HMRC usually adjusts your tax code; for earlier years you get a tax code change or a refund.
What can you claim for mileage?
If you use your own car for work, you claim the approved mileage rate — 55p a mile for the first 10,000 business miles from 6 April 2026, then 25p — minus whatever your employer already paid you per mile. The rate covers all running costs, so you cannot add fuel, MOT or repairs on top.
For years before 2026/27 the first-tier rate was 45p, so a claim covering several years uses 45p for the earlier years. Journeys from home to your permanent workplace never count; trips to a temporary workplace, between sites, or to clients do.
Work out your mileage claim
Every forgotten trip is money left unclaimed. Odo records each drive for you automatically →
Uses the HMRC approved mileage allowance payment (AMAP) rates for 2026/27: 55p per mile for the first 10,000 business miles, then 25p.
What evidence does HMRC want with a P87?
From 14 October 2024 HMRC has required evidence with every PAYE expenses claim, after a rise in ineligible claims. For vehicles, GOV.UK says you must send copies of your mileage logs including:
- the reason for every journey
- the postcode of the start point of every journey
- the postcode of the end point of every journey
If you are claiming for more than one job, send a log for each. A single annual total, or a log rebuilt from memory with round numbers, is exactly what this rule is designed to catch. Our free mileage log template has those columns already.
How to submit the P87
- Total your business miles for each tax year and work out the claim at the approved rate.
- Subtract any mileage allowance your employer paid you for those miles.
- Start the claim from GOV.UK's tax relief for vehicles you use for work page — the online route has been available since December 2024, and a paper form is still accepted.
- Attach your mileage log as evidence.
The P87 is free to submit yourself. Companies that file it for you take a percentage of the refund for paperwork you can do in an evening.
What you actually get back
A P87 gives you relief, not the claim amount in cash. If your employer pays nothing and you drive 4,000 business miles, the claim is 4,000 × 55p = £2,200.00, worth £440.00 at the 20% basic rate or £880.00 at 40%. If your employer pays something, see mileage allowance relief for the shortfall sum.
Stop reconstructing your mileage from memory
Odo logs your drives automatically in the background, you swipe each one business or personal, and it totals your claim at the 2026/27 rates — with a CSV export of every trip, dated, with its reason and distance.