HMRC Mileage Rates 2026/27
HMRC mileage rates for the 2026/27 tax year are shown below. The car and van rate for the first 10,000 business miles increased from 45p to 55p — the first change in 15 years.
| Vehicle | First 10,000 business miles | Above 10,000 miles |
|---|---|---|
| Cars and vans | 55p per mile | 25p per mile |
| Motorcycles | 24p per mile | 24p per mile |
| Bicycles | 20p per mile | 20p per mile |
These rates apply for the 2026/27 tax year, from 6 April 2026 to 5 April 2027. The car and van rate for the first 10,000 business miles increased from 45p to 55p for 2026/27.
What are the HMRC mileage rates for 2026/27?
For the 2026/27 tax year, the HMRC approved mileage rate for employees using their own cars or vans for qualifying business journeys is 55p per mile for the first 10,000 business miles and 25p for every business mile after that.
The equivalent rates are 24p per mile for motorcycles and 20p per mile for bicycles.
The first-10,000-mile car and van rate was 45p up to the 2025/26 tax year and increased to 55p for 2026/27. HMRC announced the increase during 2026 and it applies retrospectively from 6 April 2026.
HMRC mileage rates 2026/27 table
The full set of approved mileage rates for the 2026/27 tax year:
| Vehicle | First 10,000 miles | Each mile after 10,000 |
|---|---|---|
| Cars and vans | 55p | 25p |
| Motorcycles | 24p | 24p |
| Bicycles | 20p | 20p |
Source: GOV.UK — Travel mileage and fuel rates and allowances
How much can you claim using the 2026 mileage rate?
Here are three worked examples showing how the 55p and 25p rates apply to different annual mileage totals.
Example 1 — 5,000 business miles
5,000 × £0.55 = £2,750
Example 2 — 10,000 business miles
10,000 × £0.55 = £5,500
Example 3 — 12,000 business miles
First 10,000 miles:
10,000 × £0.55 = £5,500
Remaining 2,000 miles:
2,000 × £0.25 = £500
Total = £6,000
HMRC mileage rates for self-employed people in 2026/27
Self-employed sole traders and qualifying partnerships can use HMRC simplified expenses to calculate vehicle costs using flat mileage rates rather than calculating the actual business proportion of individual vehicle running costs.
For 2026/27, the simplified mileage rates are:
- Cars and goods vehicles: 55p for the first 10,000 business miles and 25p thereafter.
- Motorcycles: 24p per business mile.
Simplified expenses are optional and eligibility rules apply. Not every self-employed person can automatically claim 55p for every mile — you should check whether the simplified expenses method is right for your circumstances on GOV.UK.
HMRC mileage rates for employees in 2026/27
Approved Mileage Allowance Payments (AMAPs) apply when an employee uses their own vehicle for qualifying business journeys. For cars and vans, the tax-approved amount is based on:
55p × first 10,000 business miles
then
25p × subsequent business miles
If an employer pays less than the approved amount, the employee may potentially be able to claim Mileage Allowance Relief on the qualifying shortfall, subject to HMRC rules. This is a tax-relief mechanism — HMRC does not simply pay the employee the difference in cash.
What journeys count as business mileage?
Qualifying business journeys can include travel undertaken for work, such as travelling to:
- customer appointments
- client premises
- temporary workplaces
- business meetings
- job sites
- supplier visits
Ordinary commuting between home and a permanent workplace normally does not qualify. Not every journey in the categories above is automatically deductible — the specific circumstances of each trip determine whether it qualifies as business mileage.
What records should you keep for business mileage?
Keeping an accurate mileage log is essential. A useful business mileage record should include information such as:
- date
- business purpose
- start location
- destination
- business mileage
HMRC's employee mileage-relief guidance specifically requires mileage logs when making relevant claims and asks for the reason for each journey and start/end postcodes.
MileageCalendar helps turn work appointments from Google Calendar and Outlook into organised business mileage records, reducing the need to reconstruct journeys manually at the end of the month or tax year.
What changed from 2025/26?
The major change is the increase in the first-band car/van rate from 45p to 55p. All other rates remain the same.
| 2025/26 | 2026/27 | |
|---|---|---|
| Cars/vans — first 10,000 miles | 45p | 55p |
| Cars/vans — after 10,000 | 25p | 25p |
| Motorcycles | 24p | 24p |
| Bicycles | 20p | 20p |
The 45p rate applied to tax years from 2011/12 through 2025/26. For 2026/27 onwards, the first 10,000 business miles by car or van are at 55p per mile.
Does the 55p mileage rate include fuel?
The mileage-rate method is designed to account for vehicle running costs rather than allowing the same vehicle running costs to simply be claimed again separately.
For self-employed simplified expenses, the mileage flat rate is used instead of calculating the actual costs of buying and running the vehicle, such as fuel, insurance, repairs and servicing, subject to HMRC's rules.
Do not confuse the mileage allowance with HMRC Advisory Fuel Rates for company cars. They are different systems — Advisory Fuel Rates apply when an employer reimburses fuel for a company car, whereas the approved mileage rates covered on this page apply when you use your own vehicle for business travel.
Do electric cars get a different HMRC mileage rate?
For employees using their own car for qualifying business journeys, HMRC groups electric and hybrid cars with cars and vans for the statutory mileage rates. Therefore the 2026/27 employee own-vehicle rate is still 55p for the first 10,000 qualifying business miles and 25p thereafter.
Company-car reimbursement uses different rules and should not be confused with these rates. See GOV.UK Advisory Fuel Rates for company car fuel reimbursement guidance.
Calculate your 2026/27 business mileage
Knowing the mileage rate is easy. Remembering every business journey is harder.
MileageCalendar can turn your Google Calendar and Outlook appointments into organised business mileage records, calculate journey distances and help you prepare mileage reports.
14-day free trial. No card required.
Frequently Asked Questions
Tax rules depend on individual circumstances and can change. Check current HMRC guidance if you are unsure about your eligibility.