24/06/2026
HMRC Mileage Rates Increase!
After a 15-year freeze, the government has finally increased the Approved Mileage Allowance Payment (AMAP) rates, to reflect the soaring costs of motoring. Here is what you need to know about the updates for the 2026/27 tax year (backdated to 6 April 2026):
- Cars & Vans: Up from 45p to 55p per mile for the first 10,000 miles (25p thereafter)
- Motorcycles: 24p per mile for the first 10,000 miles (20p thereafter)
- Financial Impact: An employee driving 8,000 business miles will see an extra £800 tax-free per year
Missed Out? Remember, these rates don't just cover fuel - they account for insurance, servicing and wear-and-tear.
If your employer reimburses you at a lower rate, you can claim the difference back as Mileage Allowance Relief directly from HMRC.
Whether you are a Business updating your payroll or a worker looking to claim your fair share, make sure your mileage logs are up to date!
Want to know how this impacts your business or personal tax? Contact the team at NumberMill Ltd on 0333 121 2001 or [email protected]