Businesses and employees can now claim more for business travel, following HMRC’s first mileage rate increase in 15 years.
HM Revenue & Customs (HMRC) has announced an increase to the Approved Mileage Allowance Payments (AMAPs) for employees and self-employed individuals using their own vehicles for business journeys. The change applies from 6 April 2026 and is backdated to the start of the current tax year.
The headline rate for cars and vans has increased from 45p to 55p per mile for the first 10,000 business miles travelled each tax year. The rate for mileage above 10,000 miles remains unchanged at 25p per mile.
New HMRC Mileage Rates for 2026/27
| Vehicle | First 10,000 Business Miles | Over 10,000 Business Miles |
|---|---|---|
| Cars & Vans | 55p per mile | 25p per mile |
| Motorcycles | 24p per mile | 24p per mile |
| Bicycles | 20p per mile | 20p per mile |
Employees carrying fellow employees on a qualifying business journey can also continue to claim an additional 5p per passenger per mile.
What Does This Mean?
The increase is designed to better reflect the rising costs of motoring, including fuel, maintenance, insurance and vehicle depreciation. It is the first increase to the standard mileage rate since 2011.
For employees who use their personal vehicles for work, the change could result in significantly higher tax-free mileage reimbursements. Businesses should also review their mileage policies and expense systems to ensure they are applying the updated rates.