On the 6th April 2026, HMRC increased the approved mileage rate to 55p per mile for the first 10,000 business miles. It's a helpful change for employees and the self-employed, and it may be worth reviewing reimbursements, payroll and expense systems ...
HMRC mileage rate increase provides a higher reimbursement for business travel expenses
This is a notable change for anyone who uses a personal car or van for work. The updated mileage allowance applies to the first 10,000 business miles in the tax year and is a long-awaited response to rising motoring costs.
For employees, the practical effect is straightforward!
If a business reimburses mileage at the HMRC-approved rates, the reimbursement can now be higher and remain tax-free under the usual rules. That matters because business mileage is one area where small changes can quietly make a meaningful difference over the course of a year.
The increase also affects the self-employed who claim travel expenses using HMRC mileage rates rather than calculating actual vehicle costs. For many, the simplicity of the mileage allowance is part of its appeal, and the rise in the HMRC mileage rate makes that route a little more generous from the start of the 26/27 tax year.
It is also worth noting that the rate above 10,000 miles remains at 25p per mile. That means the HMRC mileage rate rise helps most with the earlier miles in the year, which is often where many drivers do the bulk of their qualifying journeys anyway.
What makes this update particularly interesting is that it has been backdated to the 6th April 2026, even though the confirmation arrived in May. In other words, the revised figure applies to the entire tax year, so businesses and individuals may need to review how mileage has already been processed.
The mileage rate rise may also matter for staff who are reimbursed below the approved amount!
In some cases, they may be able to claim tax relief from HMRC for the difference, provided they meet the conditions. That is one of those details that can be easy to miss when travel expenses are handled informally.
For employers, this is a sensible time to review mileage reimbursement policies, payroll settings, and expense systems. A clean update now can help avoid confusion later, especially when HMRC rates are embedded in finance processes or employee handbooks.
The broader message is simple enough: the rise in the HMRC mileage rate brings the approved rate closer to today's running costs and provides both businesses and workers with a clearer benchmark.
For anyone tracking business mileage, this change is useful, and for many, it should make tax-free mileage claims a bit more rewarding.
If anything I've written in my blog post resonates with you and you'd like to discover more of my thoughts about the HMRC mileage rate rise, then do call me on 01908 774320 and let's see how I can help you.
Don't forget to stay updated with our daily social media posts on Facebook.
Roger trained at Edward Thomas Peirson & Sons in Market Harborough before working at Hartwell & Co, followed by Chancery, as a partner. He started Essendon Accounts and Tax with Helen Beaumont in 2014 as a general practitioner with a hands-on approach.
Roger loves getting his hands dirty, working with emerging, small-to-medium and family businesses to ensure they receive the best possible accountancy advice. Roger utilises an extensive network of business contacts to leverage the best guidance and practical solutions.
There is no shortage of political discussion about UK economic growth, but the more important question is what must change to achieve it. Governments can publish strategies and promise reform, but sustainable growth depends o...
The Companies House accounts filing changes coming into force from April 2028 may sound comfortably distant, but I think businesses would be wise to start understanding them now. The reforms will change both how company accou...
Running a business can be rewarding, but it can also put considerable pressure on the person in charge. These mental health tips for business leaders can help owners and managers protect their well-being while continuing to m...
For years, UK productivity has been something of an economic headache. Before the financial crisis in 2008, productivity was growing at a much healthier rate, but progress since then has been disappointingly slow ......
There is something rather fascinating about the arrival of the new King Charles 10p coin. More than seven million are being released into circulation, meaning they should soon start appearing in our change ......
Most of us still think about mobile phone theft in terms of losing an expensive piece of technology. It is inconvenient, frustrating and potentially costly to replace, but I feel the bigger risk today is what that phone gives...
HMRC has confirmed an important change for sole traders and landlords who should already be using Making Tax Digital for Income Tax but have not yet registered. From September 2026, HMRC's automatic MTD sign-up will begin ......
Cybersecurity has been a business concern for years, but the nature of the threat is changing quickly. Artificial intelligence, increasingly sophisticated cyberattacks, and even developments in quantum computing mean business...
If you're living alone, you probably don't spend much time thinking about what would happen if something unexpected occurred. You're independent, you' ...
When you run your own business, there is always something that needs doing. But there is a difference between being busy and letting your business adm ...
For many small business owners, staying visible online feels like a full-time job. There's constant pressure to post on social media, keep websites up ...
I've always believed that multiple income streams can give you something incredibly valuable: choice. It isn't simply about earning more money. It's a ...
All content on this blog, including but not limited to text, images, videos and audio, is protected by copyright. No part of this blog may be reproduced, copied, distributed, or otherwise used without the prior written consent of the author. Unauthorised use constitutes a breach of intellectual property rights.
Please note that many elements of this blog have been created using Artificial Intelligence (AI). As such, content may not always reflect verified facts or professional advice. The information provided is for general interest only and should not be relied upon as a sole source for making decisions, financial or otherwise. Readers are strongly advised to seek independent advice from qualified professionals appropriate to their country and situation.
The author of this blog, YourPCM Limited, and its directors, employees, and authorised agents accept no liability for any loss, harm, or consequence arising from the use or interpretation of content found on this site.
The sblogit.com platform is provided on an “as is” basis. By continuing to view or interact with this blog, you acknowledge and accept these terms. If you do not agree with any part of this notice, please cease using this site immediately.
YourPCM Limited is a company registered in the UK and operates exclusively under the jurisdiction of the laws of England and Wales.
