28/05/2026
GOOD NEWS FOR DRIVERS
The government has confirmed a long-awaited increase to the business mileage allowance.
From 6 April 2026, the tax-free mileage rate for using your own car for work journeys has increased from 45p to 55p per mile for the first 10,000 miles.
What this means:
• Employers can now reimburse up to 55p per mile tax-free
• If you receive less than this, you may be able to claim tax relief on the difference
• The increase has been backdated to 6 April 2026
This is the first rise since 2011 and comes after years of pressure for higher rates due to rising motoring costs.