26/05/2026
Mileage Rate Changes Are Here — Here’s What You Need to Know
On 21st May 2026, the government announced an increase to the Mileage Allowance Payment (MAP) — a welcome change for anyone who regularly claims mileage for business travel.
What’s Changing?
From April 2026, the following new rates will apply:
You can claim 55p per mile for the first 10,000 business miles in the tax year
25p per mile for any miles over 10,000
Company owned fully electric vehicles – HMRC allow a claim of £0.07 per business mile where the vehicle is charged from home.
These increases are backdated to April 2026
The new rate applies to cars and vans only — motorbike rates remain unchanged.
This update means many business owners, employees and sole traders will see higher allowable claims, helping offset rising travel costs.
Keeping Accurate Mileage Records
To make a mileage claim you must have a mileage log. It’s essential to keep a clear and complete mileage log.
HMRC can request evidence at any time, so make sure your records include:
Date of the journey
Purpose of the trip
Start location
End location
Exact miles driven (no rounding up)
A few best‑practice tips:
Log your mileage promptly and in chronological order
Use exact figures — avoid estimating or rounding
If you use a spreadsheet, keep a backup copy to avoid losing data
If your log is lost or incomplete, contact HMRC for guidance on what to do next. It is also good practice to keep your fuel receipts in the event of any challenge.
Mileage claims do not cover:
Road, bridge, tunnel tolls
Parking fees
Congestion charges
Speeding or parking fines, other road offences
If you would like any advice with claiming expenses as a sole trader or business, we are happy to help.
