27/05/2026
The Government has announced the first increase in the Approved Mileage Allowance Payment (AMAP) rate since 2011.
Chancellor Rachel Reeves announced last week that the rate has gone up from 45p to 55p per mile, backdated to April 2026.
The uplift will apply to cars and vans only. The approved mileage rate is intended to cover the overall cost of owning and running a personal vehicle for business use, meaning employees cannot also separately claim for fuel, servicing, repairs, MOTs or vehicle tax. Different rules apply where a company car is provided.
The Approved Mileage Allowance scheme allows employers to reimburse qualifying business mileage free from tax and National Insurance, making it an important area for businesses to review as part of their expense and payroll processes.
If you would like to know more about mileage allowances our team would be happy to help.