01/06/2026
🚗 HMRC Mileage Rate Increased to 55p per Mile (from 6 April 2026)
Good news for employees and company directors using their own car for business travel.
HMRC has officially increased the Approved Mileage Allowance Payment (AMAP) rate for cars and vans from:
➡️ 45p per mile → 55p per mile
(for the first 10,000 business miles each tax year)
📅 Effective from: 06/04/2026
📌 Applies to: 2026/2027 tax year onwards
📌 Over 10,000 miles remains at 25p per mile
This is the first increase in the HMRC mileage rate in around 15 years and may result in higher tax-free mileage reimbursements for employees and directors using their personal vehicles for business purposes.
⚠️ Important:
The change is backdated to 6 April 2026, so businesses that already processed mileage at 45p after that date may wish to review and adjust their records/payroll where appropriate.
Current HMRC approved rates:
🚘 Cars & Vans: 55p (first 10,000 miles) / 25p thereafter
🏍️ Motorcycles: 24p
🚲 Bicycles: 20p
Official HMRC guidance available on GOV.UK.