Tax-Free Mileage Rates Increase from April 2026

Higher mileage rates announced for cars and vans

Businesses, employees, and self-employed individuals will benefit from an increase in the tax-free mileage rate for cars and vans from the 2026/27 tax year.

The change, which is backdated to 6 April 2026, increases the amount of tax relief available on qualifying business mileage and may provide valuable additional tax savings for those who regularly use their own vehicle for work purposes.

Updated Mileage Rates for the Self-Employed

For self-employed individuals using the simplified expenses method, the approved mileage rates from 6 April 2026 are:

Vehicle	2026/27 Rate	Previous Rate
Cars and goods vehicles – first 10,000 business miles	55p per mile	45p per mile
Cars and goods vehicles – over 10,000 business miles	25p per mile	25p per mile
Motorcycles	24p per mile	24p per mile

Updated Mileage Rates for Employees

The approved mileage allowance payments (AMAPs) for employees are now:

Vehicle	2026/27 Rate	Previous Rate
Cars and vans – first 10,000 business miles	55p per mile	45p per mile
Cars and vans – over 10,000 business miles	25p per mile	25p per mile
Motorcycles	24p per mile	24p per mile
Bicycles	20p per mile	20p per mile

What Has Changed?

The only change is the increase in the rate for cars, vans and goods vehicles for the first 10,000 business miles travelled each tax year. All other mileage rates remain unchanged.

This increase reflects the rising costs associated with operating a vehicle and may result in greater tax relief for self-employed individuals, as well as higher tax-free mileage reimbursements for employees.

Are You Claiming the Correct Mileage Allowance?

Keeping accurate mileage records is essential to ensure you claim the correct amount of tax relief and remain compliant with HMRC requirements.

At SJC Chartered Accountants, we can help businesses and individuals understand the most tax-efficient way to claim business travel expenses and ensure all available reliefs are being utilised.

If you would like advice on mileage claims, employee expenses, or any other aspect of tax planning, please get in touch with our team.