Written by Hammad Rasool MAAT·AAT licensed accountant·Updated November 2026

Enter your miles above and the result appears here.

Budget 2026 update: The 55p rate for the first 10,000 business miles is now permanent, and from 6 April 2027 the rate above 10,000 miles rises from 25p to 35p. See everything that changed.

The rates for 2026/27

  • Cars and vans, first 10,000 business miles: 55p a mile (45p before 6 April 2026)
  • Cars and vans, after 10,000 miles: 25p a mile
  • Motorcycles: 24p a mile
Example

You drive 11,000 business miles. The first 10,000 at 55p is £5,500. The next 1,000 at 25p is £250. Your claim is £5,750. At the old rate the same miles were worth £4,750, so the change is worth an extra £1,000 of claim.

If you are self employed

The flat rate is a simple alternative to working out the actual cost of running the vehicle. If you use it, you cannot also claim fuel, insurance, repairs, servicing or road tax, but you can still claim parking and tolls. Once you choose the flat rate for a vehicle you must stay with it for as long as you use that vehicle in the business. You cannot use it for a vehicle you have already claimed capital allowances on.

If you are an employee

If you use your own car for work journeys and your employer pays less than the approved rate, you can claim tax relief on the difference. Many employers are still paying 45p. An employee driving 8,000 business miles at 45p can now claim relief on the extra 10p a mile, which is £800, worth £160 to a basic rate taxpayer and £320 to a higher rate taxpayer.

Key point: travel between home and your normal place of work is commuting and does not count. Business miles are journeys you make in the course of the work itself, or to a temporary workplace.

Keep a mileage log

HMRC can ask for evidence. Record the date, where you went, why and how many miles. A phone app or a simple spreadsheet is enough, as long as it is kept as you go and not rebuilt from memory at the end of the year.

Common questions

What is the HMRC mileage rate for 2026/27?
55p a mile for the first 10,000 business miles in a car or van and 25p after that. Motorcycles are 24p a mile.
When did the mileage rate change to 55p?
The 55p rate applies from 6 April 2026. Before that the rate for the first 10,000 miles was 45p.
My employer still pays 45p. Can I claim the difference?
Yes. You can claim tax relief on the gap between what your employer pays and the approved rate.
Can I claim fuel as well as mileage?
No. The mileage rate already covers fuel and the other running costs of the vehicle.
Does commuting count as business mileage?
No. Ordinary travel between home and a permanent workplace is not business mileage.

Checked against GOV.UK on 10 November 2026: Simplified expenses: vehicles, Increase to mileage rates (policy paper, 17 June 2026), Tax relief for employees: vehicles you use for work.

About the author

Hammad Rasool MAAT is an AAT licensed accountant based in Bolton. TaxTune Accountants looks after sole traders, landlords, contractors and limited companies in Bolton, Wigan, Bury, Salford, Oldham, Stockport and Manchester, and online across the UK.