10/06/2026
After 15 years without change Approved Mileage Allowance Payment (AMAP) rate is finally increasing.
From 6 April 2026, the rate for employees using their own cars or vans for business travel will rise from 45p to 55p per mile for the first 10,000 business miles travelled each year. Even better, the change will be backdated to April 2026.
What does this mean in practice?
✅ Employees can receive up to 55p per mile for the first 10,000 business miles tax-free.
✅ The 25p per mile rate for business mileage above 10,000 miles remains unchanged.
✅ Motorcycle and bicycle rates stay the same at 24p and 20p per mile respectively.
✅ Passenger payments for car sharing remain at 5p per passenger per business mile.
The increase also applies to the simplified expenses regime for the self-employed from 2026–27, allowing sole traders to claim:
• 55p per mile for the first 10,000 miles in cars and goods vehicles.
• 25p per mile thereafter.
• 24p per mile for motorcycles.
The government has confirmed that a wider review of mileage rates will take place in a future Budget.
For employers, payroll teams, and self-employed individuals, now is the time to review mileage policies and ensure claims from April 2026 reflect the updated rates.
A long-overdue change — but perhaps only the first step towards a fairer system.
