Guide

HMRC mileage rates 2026/27: 45p becomes 55p

Updated October 2026 · 5 min read

After fifteen years frozen at 45p, HMRC raised the approved mileage rate for cars and vans to 55p per mile for the 2026/27 tax year: the first change to Approved Mileage Allowance Payments (AMAPs) since 2011/12. If you drive your own vehicle for work, the amount you can be reimbursed tax-free (or claim relief on) just went up by more than 20%.

The 2026/27 approved rates

Carrying a colleague on a business journey adds an extra 5p per passenger per mile, tax-free, on top of your own rate.

A worked example

You drove 12,000 business miles in your own car during 2026/27:

(10,000 × £0.55) + (2,000 × £0.25) = £5,500 + £500 = £6,000 tax-free. Under the old 45p rate the same mileage was worth £5,000: the increase is worth £1,000 on this example alone.

Work out your allowance

Enter your business miles and pick your vehicle.

Who this applies to

• Employees using their own vehicle: your employer can reimburse you up to the approved rate tax-free. If they pay you less (or nothing), you can claim Mileage Allowance Relief on the difference through Self Assessment or a P87 form.
• Self-employed: you can use the same flat rates instead of tracking actual vehicle costs (HMRC's "simplified expenses"), as long as you stay consistent for that vehicle.

The 10,000-mile threshold makes your log matter

Because the rate drops from 55p to 25p after 10,000 miles, HMRC expects a record showing when each business journey happened and how far it was, not just an annual total. For each trip: date, start and end points, distance, and business purpose.

If you use Google Maps, your phone has already recorded every journey in your Timeline, with GPS timestamps and distances. Turning that into a claimable log:

1. Export your Timeline from your phone (see the Timeline export guide).
2. Open the file in Time-mile: your Timeline file is read in your browser and never uploaded.
3. Switch the distance unit to miles in the settings, then filter to your business journeys by date and activity type.
4. Export a PDF report or a CSV: the app applies the 55p/25p split at 10,000 miles for you, trip by trip.

What HMRC asks to see with a claim

If you claim Mileage Allowance Relief as an employee, gov.uk tells you to "keep records of the dates and mileage of your work journeys". When you claim, HMRC asks for copies of your mileage logs, with the reason for each journey and the postcode of its start point and of its end point. Claiming for more than one employment means a log for each.

Postcodes are what most logs lack. In Time-mile, find the addresses first, then set the address format to the full address in the settings (both Premium): each start and end then carries the postcode Google holds for it. Check the rows before you send them, since a stop with no street address can come back without one.

Official sources

• gov.uk: Travel, mileage and fuel rates and allowances
• gov.uk: Claim tax relief for your job expenses, business mileage

The full dated history of these figures, each read at the authority that published it: HMRC approved mileage rates on lexrates.

Frequently asked questions

What is the HMRC mileage rate for 2026/27?

For the 2026/27 tax year, HMRC raised the approved mileage rate for cars and vans to 55p per mile for the first 10,000 business miles, up from 45p. It is the first change to Approved Mileage Allowance Payments since 2011/12.

What is the HMRC mileage rate after 10,000 miles?

For cars and vans the rate drops from 55p per mile to 25p per mile for every business mile above 10,000 in the tax year. Motorcycles stay at 24p per mile and bicycles at 20p per mile at all mileages.

Can I claim mileage if my employer pays me less than the approved rate?

Yes. If your employer reimburses you less than the approved rate, or nothing at all, you can claim Mileage Allowance Relief on the difference through Self Assessment or a P87 form.

How much extra can I claim for carrying a passenger?

Carrying a colleague on a business journey adds an extra 5p per passenger per mile, tax-free, on top of your own approved rate.

Can I use my Google Timeline as an HMRC mileage log?

Yes. If you use Google Maps, your phone has already recorded every journey in your Timeline with GPS timestamps and distances. You can export it, open it in Time-mile in your browser, switch the distance unit to miles, filter to your business journeys, and export a CSV or PDF log.

Does HMRC need postcodes in a mileage log?

When you claim Mileage Allowance Relief as an employee, HMRC asks for copies of your mileage logs with the reason for each journey and the postcode of its start point and of its end point. Time-mile prints them when the address format is set to the full address, a Premium setting.