27/05/2026
🚗 Big change for UK business mileage claims 👀
HMRC has increased the simplified approved mileage allowance for cars and vans from 45p to 55p per mile for the first 10,000 business miles (when using your personal vehicle) — the first increase in over a decade.
The 25p rate after 10,000 miles remains unchanged, as does motorcycle mileage.
Although released in the last week, HMRC are backdating to the start of the 26-27 tax year.
With fuel, insurance, servicing, and general running costs continuing to rise, this update will be welcome news for employees, contractors, and business owners across the UK.
It’s also a reminder for businesses to:
✅ Review mileage reimbursement policies
✅ Update payroll and expense systems
✅ Ensure employees are claiming the correct rates
✅ Back date your claims if you have claimed already!
For anyone regularly travelling for work, that extra 10p per mile could make a noticeable difference over the course of the year.
And if you drive 10000 miles or over, that is an extra £1000 in your pocket.
Happy motoring!
