HMRC Mileage Rates 2026

What are the HMRC approved mileage rates for 2026?

The HMRC approved mileage payment rate for cars and vans is 55p per mile for the first 10,000 business miles in a tax year, and 25p per mile for each mile above 10,000. These rates have been in place since 2011 and are expected to remain the same for the 2025/26 and 2026/27 tax years.

For motorcycles, the approved rate is 24p per mile. For bicycles, there is no specific HMRC rate — you can claim actual costs or negotiate a rate with your employer.

• Cars and vans: 55p per mile (first 10,000 miles), 25p per mile (above 10,000)
• Motorcycles: 24p per mile
• Bicycles: no approved rate — claim actual costs
• Passenger payments: 5p per mile per passenger (for fellow employees)

The 10,000 mile threshold explained

The 10,000 mile threshold applies per tax year (6 April to 5 April), not per calendar year. Once you exceed 10,000 business miles, the rate drops from 55p to 25p per mile for the rest of the tax year.

The threshold resets on 6 April each year. If you drive 12,000 business miles in 2026/27, the first 10,000 are at 55p (£5,500) and the remaining 2,000 are at 25p (£500), giving a total claim of £6,000.

MileageCalendar tracks the threshold automatically and switches the rate for you — no manual calculations needed.

How to claim your mileage allowance

If you are self-employed, you claim mileage through your Self Assessment tax return. You can use the approved rates without needing to keep records of actual fuel costs, insurance or maintenance.

If you are an employee, your employer can pay you the approved rate tax-free. If your employer pays less, you can claim tax relief on the difference through your Self Assessment.

• Track every business journey with date, start, end and purpose
• Calculate total miles and multiply by the approved rate
• Keep records for at least 5 years after the 31 January submission deadline
• Submit the total on your Self Assessment return

What records do you need to keep?

HMRC requires you to keep records of every business journey: the date, the start and end points, the total miles and the business purpose. You do not need to keep fuel receipts if you use the approved mileage rate.

MileageCalendar records all of this automatically for every tracked journey and stores it securely for as long as you need it.