What are the HMRC mileage rates for 2026-27?
Cars and vans pay 55 pence per mile for the first 10,000 miles, then 25 pence per mile after that. Motorcycles pay 24 pence per mile and bicycles 20 pence per mile, with no distance threshold.
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Cars and vans2026-27
55 pence per mile
for the first 10,000 miles, then 25 pence per mile
Source: GOV.UK AMAP rates (2026-27)
Country rates by MileagePilotUpdated Sep 4, 2026
HMRC rates in force
The approved mileage allowance payments for 2026-27. Cars and vans step down after 10,000 business miles; motorcycles and bicycles pay one rate whatever the distance.
2026-27
In force| Trip or vehicle | Rate | Source |
|---|---|---|
| Cars and vans | First 10,000 miles · 55 pence per mile; Over 10,000 miles · 25 pence per mile | GOV.UK AMAP rates (2026-27) |
| Motorcycles | Motorcycle rate · 24 pence per mile | GOV.UK AMAP rates |
| Bicycles | Bicycle rate · 20 pence per mile | GOV.UK AMAP rates |
What decides the figure
- The car and van rate is 55 pence per mile for the first 10,000 business miles in the tax year and 25 pence per mile for every business mile after that. That first tier was 45 pence per mile until 6 April 2026.
- An employer can pay up to the approved amount without reporting it or deducting National Insurance. Anything above the approved amount is taxable pay.
- Carrying a colleague on a business journey adds 5p per passenger per mile, tax free, on top of your own mileage.
- Where an employer pays less than the approved amount, the employee claims relief on the difference rather than the employer adjusting the rate.
HMRC rates by year
The car and van rates by tax year. Every earlier year in the table pays 45 pence per mile for the first tier; 2026-27 is where it moves.
2026-27
Cars and vans · 55 pence per mile -> 25 pence per mile
2025-26
Cars and vans · 45 pence per mile -> 25 pence per mile
2024-25
Cars and vans · 45 pence per mile -> 25 pence per mile
2023-24
Cars and vans · 45 pence per mile -> 25 pence per mile
2022-23
Cars and vans · 45 pence per mile -> 25 pence per mile
2021-22
Cars and vans · 45 pence per mile -> 25 pence per mile
Start with your case
The approved rate answers most UK mileage questions, but which figure applies depends on the vehicle and on who is claiming.
Your employer pays your mileage
The approved amount is a ceiling rather than a minimum: paid at or below it, the reimbursement is tax free and does not need reporting.
HMRC employee mileage rates 2026-27Your employer pays less than the approved amount
The shortfall is what Mileage Allowance Relief is built on, claimed through your Personal Tax Account on form P87, or through Self Assessment when the claim is larger.
Mileage allowance reliefYou drive a company car
Company cars do not use the approved mileage rates. Fuel the employer pays for, including private miles, follows the advisory fuel rates instead.
Advisory fuel ratesYou carry colleagues to the same job
Passenger payments add 5p per passenger per business mile, tax free, when the journey is business travel for the passenger too.
UK passenger paymentsWhat the record has to show
HMRC asks for the business journeys to be identifiable years later, so the log carries the same fields for every trip and keeps the vehicle types apart.
- The date, destination, and business reason for each journey.
- Miles split by vehicle type: car or van, motorcycle, or bicycle, because each has its own rate.
- What the employer paid for the same journeys, so the shortfall behind a relief claim is visible.
How long to keep it
Employees should keep the records for at least 22 months after the end of the tax year, and a relief claim can reach back four tax years beyond the one it is about.
The approved rates, the record requirement, and the four-year claim window.
Common questions
Can I still claim relief if my employer pays less than the approved amount?
Yes. The difference between the approved amount and what your employer paid is the basis of Mileage Allowance Relief, which reduces your tax bill at your marginal rate rather than refunding the miles themselves.
Do I need receipts to claim mileage?
No receipts for the miles themselves, because the claim rests on a mileage record. Keep receipts for anything claimed on top of the rate, such as parking or tolls, since those are separate expenses.
Do employers have to pay the approved rate?
No. It is the tax-free ceiling rather than a minimum, so an employer may pay less, and the employee's relief claim is what covers the gap.
What changed on 6 April 2026?
The car and van rate for the first 10,000 miles rose from 45 pence per mile to 55 pence per mile. The rate above 10,000 miles stayed at 25 pence per mile, and the motorcycle, bicycle, and passenger rates were unchanged.
Official references
- GOV.UK: travel — mileage and fuel rates and allowances
Approved mileage rates by tax year, and the passenger payment rate.
- GOV.UK: expenses and benefits — business travel mileage
How the approved amount is worked out and what has to be reported.
Explore United Kingdom
Every HMRC page on the site: the rates in force, the calculators that price them, and the templates that support a claim.