The HMRC mileage rate is now 55p: what the 2026/27 change means for you

Updated July 2026 · Applies from 6 April 2026 (2026/27 tax year)

In May 2026 the Chancellor announced the first increase to HMRC's approved mileage rates in 15 years: from 45p to 55p per mile for the first 10,000 business miles in a tax year (cars and vans), backdated to 6 April 2026. The over-10,000-mile rate stays at 25p, and you can still add 5p per mile per passenger you carry for work.

What your business miles are now worth

Every mile you fail to record now costs you 22% more than it did last year. The only thing standing between you and those amounts is a proper log.

Who can claim the 55p rate

• Self-employed sole traders using their own car or van for business journeys, via simplified mileage expenses on Self Assessment.
• Limited company directors who own their car personally and charge the company for business miles at the approved rate.
• Employees who use their own car for work journeys (not commuting). If your employer reimburses the full 55p it's tax-free; if they pay less, you can claim Mileage Allowance Relief on the difference from HMRC.

What HMRC expects you to record

For every business journey: the date, the start and end points, the purpose, and the miles driven. A shoebox of fuel receipts is not a mileage log.

The maths only works if the journey is logged

Most people under-claim for one boring reason: the record was never kept. The trip happened, the miles were real, but at tax time there's nothing to submit. At 55p a mile, a single unlogged 100-mile round trip is £55 gone.