For the first time in 15 years, HMRC has increased its approved mileage rate for cars and vans.
The change applies retrospectively from 6 April 2026 and could mean increased tax relief for employees, company directors and sole traders who use their own vehicles for business journeys.
What has changed?
The approved mileage rate for cars and vans has increased from 45p to 55p per mile for the first 10,000 business miles travelled each tax year.
This rate is used when calculating mileage allowances and tax relief for business travel undertaken in a personal vehicle.
Why is this important?
Many individuals and business owners rely on HMRC's approved mileage rates when claiming expenses or tax relief.
As the rate has increased, those who regularly travel for work may now be entitled to claim more than they could previously.
Who could be affected?
You may be affected if you are:
- An employee who uses your own vehicle for business travel
- A company director claiming mileage expenses
- A sole trader using the mileage allowance method
Understanding how the new rates apply to your circumstances can help ensure you are claiming the correct amount of tax relief.
Need help?
If you're unsure how the mileage rate changes affect you or your business, we're here to help.
? Call our team on 02476 715111 for advice and support.
