When did the HMRC mileage rate change?

The Chancellor announced an increase from 45p to 55p per mile on 21 May 2026, backdated to 6 April 2026. This was the first change to the approved mileage rate in 15 years.

How much can I claim for 10,000 business miles in 2026/27?

At the new rate of 55p per mile, 10,000 business miles = £5,500 in tax-deductible mileage claims. At the basic rate of 20% tax, that saves £1,100 in tax.

🆕 Rate changed April 2026

HMRC Mileage Rate 2026/27

Q: What is the HMRC mileage rate for 2026/27?

The HMRC approved mileage rate for cars and vans increased to 55p per mile for the first 10,000 business miles in 2026/27, backdated to 6 April 2026. The rate above 10,000 miles remains 25p per mile. Motorcycles are 24p per mile.

Q: What counts as business mileage?

Business mileage includes travel to client sites, temporary workplaces, meetings, and business errands. Regular commuting from home to a permanent workplace does NOT qualify for the mileage allowance.

The approved mileage rate rose to 55p per mile from 6 April 2026 — the first increase in 15 years. Calculate your claim and track every business trip for free.

NEW

Car / Van

55p

First 10,000 miles
↑ from 45p

Car / Van

25p

Over 10,000 miles
Unchanged

Motorcycle

24p

All miles
Unchanged

Bicycle

20p

Employees only
Unchanged

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⚡ New rate backdated to 6 April 2026 The Chancellor announced the increase on 21 May 2026. If you've been claiming at 45p/mile since April, you can top up your claim to 55p/mile for all journeys made from 6 April 2026 onwards.

What is the HMRC approved mileage rate?

The HMRC Approved Mileage Allowance Payment (AMAP) rate is the amount you can claim tax-free for using your own vehicle for business travel. For self-employed people, claiming the mileage rate is the simplest way to account for vehicle costs — it covers fuel, insurance, wear and tear, and MOT in one flat rate per mile.

The rate increased to 55p per mile for the first 10,000 business miles from 6 April 2026 — the first rise since 2011, when it went from 40p to 45p.

How much can you claim at 55p/mile?

Annual business miles	Previous claim (45p)	New claim (55p)	Difference
2,000 miles	£900	£1,100	+£200
5,000 miles	£2,250	£2,750	+£500
8,000 miles	£3,600	£4,400	+£800
10,000 miles	£4,500	£5,500	+£1,000

Who can claim the HMRC mileage rate?

Self-employed and sole traders — claim on your Self Assessment tax return
Employees — your employer can reimburse you at 55p/mile tax-free
Company directors — claim as a business expense through your limited company
CIS workers and contractors — claim on your self-employed tax return

What counts as business mileage?

✅ Travel to client sites, temporary workplaces, or job sites
✅ Travel to meetings, training, and business events
✅ Running business errands (picking up materials, supplies)
✅ Travel between two workplaces
❌ Regular commute from home to your permanent workplace
❌ Personal journeys, shopping, school runs

Mileage rate vs actual costs — which is better?

You can either claim the flat HMRC mileage rate OR claim actual vehicle running costs (fuel, insurance, repairs) as a proportion of business use. You cannot claim both. For most self-employed workers with under 15,000 business miles per year, the flat rate is simpler and often gives a higher deduction.

Once you start claiming actual costs for a vehicle, you cannot switch to the mileage rate for that vehicle. Most accountants recommend starting with mileage rate unless you have very high actual costs.

How to keep a mileage log for HMRC

HMRC requires you to keep a record of every business journey including the date, start and end location, business purpose, and miles driven. Without a log, your mileage claim can be rejected. Records must be kept for at least 5 years after the Self Assessment filing deadline.

Frequently asked questions

What is the HMRC mileage rate for 2026/27?

The rate is 55p per mile for cars and vans for the first 10,000 business miles, backdated to 6 April 2026. After 10,000 miles the rate drops to 25p per mile. Motorcycles are 24p per mile.

When did the mileage rate change from 45p to 55p?

The Chancellor announced the change on 21 May 2026 and backdated it to 6 April 2026 — the start of the 2026/27 tax year. This was the first increase in 15 years.

Can I claim the mileage rate if I have an electric car?

Yes. The 55p/mile approved mileage rate applies to all cars including electric vehicles. However, there is a separate Advisory Electricity Rate (AER) for company car drivers — this is different and only applies if your employer pays for your electricity.

Does the 55p rate apply to previous tax years?

No. The 55p rate applies from 6 April 2026 only. For the 2025/26 tax year and earlier, the rate was 45p per mile for the first 10,000 miles.

What is the mileage rate for a passenger?

You can claim an additional 5p per mile for each business passenger you carry in your car. So if you take a colleague to a client meeting, you can claim 60p per mile (55p + 5p passenger rate).

Disclaimer: Mileage rates shown are based on HMRC's approved mileage allowance payment (AMAP) rates for 2026/27. This page is for general guidance only and is not tax advice. Always confirm with HMRC or a qualified accountant for your specific circumstances.

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