HMRC Mileage Rates 2026/27: 55p a Mile, Backdated to 6 April 2026

The approved mileage rate for cars and vans is 55p a mile for the first 10,000 business miles in 2026 to 2027.

Checked on 25 October 2026. Rates come from GOV.UK's simplified expenses page. Details of the change come from the Low Incomes Tax Reform Group, ACCA and Ross Martin Tax Consultancy, linked below. This is not tax advice.

GOV.UK confirms the car, van and motorcycle figures in its simplified expenses table. The bicycle and passenger figures come from Ross Martin Tax Consultancy.

What changed and when

• Announced: by the Chancellor on 21 May 2026, according to Ross Martin. The Low Incomes Tax Reform Group says it is part of a package to address rising fuel prices.
• Applies from: 6 April 2026, the start of the tax year. ACCA says the rate runs until 5 April 2027.
• First change in 15 years: the 45p rate had applied since April 2011.

Worked example

A sole trader drives 12,000 business miles in 2026 to 2027.

That is £1,000 more of allowable expenses for the year.

If you are self-employed

GOV.UK's simplified expenses page lists 55p a mile for the first 10,000 miles in 2026 to 2027. Use it if you claim vehicle costs with the flat rate. It replaces claiming actual fuel, insurance and repair costs for that vehicle.

• Keep a log of each business journey: date, start and end point, purpose and miles.
• Count miles across the whole tax year. The 10,000-mile threshold resets on 6 April.
• If you already recorded April and May 2026 at 45p, update them to 55p before you file.

If you are in Making Tax Digital for Income Tax, see our MTD quarterly update errors guide.

If you are an employee or employer

The Low Incomes Tax Reform Group says the rise applies to approved mileage allowance payments (AMAPs) and mileage allowance relief (MAR).

• Employers can pay up to 55p a mile tax-free for the first 10,000 miles. Paying more makes the excess taxable.
• Employees paid less than the approved rate can claim tax relief on the difference. That is mileage allowance relief.
• Backdating: none of the sources we checked set out how employers should handle April and May 2026 payments. Ask your payroll provider or accountant.

Quick answers

What is the HMRC mileage rate for 2026/27?

• 55p a mile for the first 10,000 business miles in a car or van, then 25p a mile.

Is the 55p mileage rate backdated?

• Yes. It applies from 6 April 2026, the start of the 2026 to 2027 tax year.

Does the new rate apply to self-employed mileage?

• Yes. GOV.UK's simplified expenses page shows 55p for the first 10,000 miles in 2026 to 2027.

Has the motorcycle mileage rate changed?

• No. It stays at 24p a mile.

Why do some templates still show 45p?

• 45p was the rate until 5 April 2026. Templates made before the May 2026 announcement still use it.

Sources, checked 25 October 2026:

• GOV.UK: simplified expenses, vehicles
• Low Incomes Tax Reform Group: increase in mileage rates 2026/27 (21 May 2026)
• ACCA: increase to approved mileage allowance payments
• Ross Martin Tax Consultancy: mileage rates increase (27 May 2026)
• ICAEW: approved mileage rate increased for first time in 15 years