28/05/2026
HMRC Business Mileage Rate Increased to 55p Per Mile
Good news for employees and self-employed workers who use their own vehicle for business travel, HMRC has increased the approved mileage rate from 45p to 55p per mile for the first 10,000 business miles.
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The change is effective from 6 April 2026 and has been backdated to the start of the tax year.
What this means:
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Higher tax-free mileage claims
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Increased allowable business expenses
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Better support with rising motoring costs
Current rates for cars and vans:
π First 10,000 business miles = 55p per mile
π Over 10,000 miles = 25p per mile
Remember:
β Normal commuting to your regular workplace does NOT count
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Business travel to clients, temporary workplaces, and meetings DOES count
Keeping accurate mileage records is essential to support your claims and remain compliant with HMRC requirements.
At Millhouses Accountancy, we help businesses and individuals make sure they are claiming the correct expenses and staying fully compliant.
π Need advice on mileage claims or bookkeeping? Get in touch with our team today.