16/06/2026
HMRC Mileage Rates Increase from April 2026 – What Businesses Need to Know
For the first time in 15 years, HMRC has increased the Approved Mileage Allowance Payment (AMAP) rate for cars and vans, effective from 6 April 2026. The rate for the first 10,000 business miles has risen from 45p to 55p per mile, while the rate for mileage above 10,000 miles remains unchanged at 25p per mile. The passenger rate remains at 5p per mile per passenger.
This long-awaited change reflects the significant increase in motoring costs over recent years, including fuel, insurance, maintenance and vehicle running expenses. The new rate applies not only to employees claiming business mileage but also to self-employed individuals using HMRC's simplified mileage method.
From an employer's perspective, now is the time to review mileage reimbursement policies. Businesses can reimburse employees up to the approved rate without creating a tax or National Insurance liability. Employers who have already paid mileage claims at the previous 45p rate since April 2026 may wish to consider making top-up payments, as the increase has been backdated to the start of the tax year.
For employees and business owners alike, the change provides a welcome increase in tax-efficient support for business travel. As always, maintaining accurate mileage records remains essential to support any claims.
If you would like advice on how these changes affect your business, please contact us.
