HMRC has not published the 2027-28 approved mileage rates. Until it does, the 2026-27 rates run to 5 April 2027: 55p per mile for cars and vans over the first 10,000 business miles, 25p after that, 24p for motorcycles, and 20p for bicycles. The government has said it will set out its review of these rates at the Budget on 28 October 2026.
Status
Not published yet
Next decision point: the Budget on 28 October 2026
Current published rate
55 pence per mile
Cars and vans · first 10,000 business miles in the 2026-27 tax year
25 pence per mile after 10,000 miles · motorcycles 24 pence per mile · bicycles 20 pence per mile
The 2026-27 rates run from 6 April 2026 to 5 April 2027, and they apply by trip date: miles driven inside that window are covered by these figures even if the claim is filed later. The 10,000-mile threshold is counted per tax year and per vehicle type.
55 pence per mile
First 10,000 business miles in the tax year
Source: GOV.UK AMAP rates (2026-27)
24 pence per mile
Every business mile
Source: GOV.UK AMAP rates
Motorcycle and bicycle rates are flat: the 10,000-mile threshold only applies to cars and vans.
Two things are already on record: the review the government promised, and the Budget date it will be set out at. The rest of the timeline is the history that produced the current figure.
The government has said it will set out its review of the approved mileage rates beyond 2026-27 at the Budget · GOV.UK: increasing mileage rates
Raised the cars and vans rate for the first 10,000 miles from 45p to 55p; the over-10,000, motorcycle, and bicycle rates were unchanged · GOV.UK: travel — mileage and fuel rates
Cars and vans sat at 45p for the first 10,000 miles and 25p after that; motorcycles 24p and bicycles 20p · GOV.UK: approved mileage rates 2011 to 2026
Unlike the IRS rate, the UK figure is not produced by an annual cost study. It is set by government and legislated through the mileage allowance rules in ITEPA 2003, which is why it can stay flat for years and then move in one step.
Set by government
The 10p rise for 2026-27 followed a review announced in March 2026 and concluded in May 2026 — fifteen tax years after the previous change.
AMAP limit
Employers can pay more than the approved rate, but anything above it is taxable pay unless the employee claims the shortfall separately. The approved rate is the amount that needs no tax or National Insurance.
Retroactive starts
The 2026-27 rise was announced on 21 May 2026 and applied from 6 April 2026, so claims already paid at 45p had to be topped up after the fact.
The published commitment is about approved mileage payments and simplified mileage rates, so a 2027-28 change can reach beyond the cars-and-vans figure people search for.
Same rates, same review
The simplified expenses rates for vehicles use the same per-mile amounts, so they move together.
Counted per tax year, per vehicle type
The higher rate applies until the threshold is passed, whenever that happens in the tax year — so a claim in month one and a claim in month twelve can use different rates.
5p per passenger per mile
Separate from AMAP and unchanged by the mileage review: it is an extra amount for carrying colleagues on a work journey.
Reviewed quarterly
For company car drivers reclaiming fuel, on a different cycle from AMAP.
The UK tax year turns over on 6 April, and the mileage threshold resets with it. None of the preparation below depends on what the new rate turns out to be.
The tax year runs 6 April to 5 April, so a claim that spans the boundary uses two sets of rates and two threshold counts.
UK mileage records checklistThe 10,000-mile threshold is per tax year, so payroll needs the cumulative figure to know when the lower rate starts.
A policy that quotes a per-mile figure rather than the approved rate needs updating whenever the ceiling moves.
Mileage reimbursement policy templateIf 2027-28 repeats the 2026-27 pattern, claims paid early in the tax year may need topping up. Keep the trip-level data that makes a re-run possible.
Mileage log templatesEmployees reimbursed below the approved rate can claim mileage allowance relief on the shortfall, which is a separate calculation from the reimbursement itself.
How to claim mileage reliefThe rates are published in HMRC's employer guidance as well as in announcements, and the guidance is what payroll software vendors update against.
Not published yet. Until HMRC sets them, the 2026-27 rates apply to the current tax year: 55 pence per mile for the first 10,000 business miles in a car or van, 25 pence per mile after that, 24 pence per mile for motorcycles, and 20 pence per mile for bicycles.
The government has said it will set out its review of the approved mileage rates beyond 2026-27 at the Budget on 28 October 2026. Rates for a tax year normally appear in HMRC's rates and thresholds guidance for employers before the tax year starts on 6 April 2027.
No. A Budget statement sets policy; the rate itself still has to be legislated and takes effect from a tax-year boundary. The 2026-27 rise was announced on 21 May 2026 and applied from 6 April 2026, so a 2027-28 change would most likely apply from 6 April 2027.
Not knowable in advance. The rate is a government decision rather than an automatic indexation, and the 45p rate it replaced had been unchanged for fifteen tax years, so long freezes and single large increases are both part of the pattern.
Yes. The rate that applies is the one in force on the date of travel, so 2026-27 miles keep the 2026-27 rates no matter when the claim is submitted — and if a 2027-28 rate is later backdated, claims already settled are topped up.
Yes. The threshold is counted per tax year, so the higher rate applies again from the first business mile of the new tax year, then drops to the lower rate once 10,000 miles have been claimed in that year.
Employees can claim mileage allowance relief on the shortfall between the approved amount and what the employer paid, which reduces their tax bill through a P87 claim or a Self Assessment return. The employer still decides what to reimburse.
The published review covers approved mileage payments and simplified mileage rates generally, so they can move at the same time. Motorcycle (24p) and bicycle (20p) rates have been unchanged since 2011-12, and only cars and vans rose for 2026-27.
The official table of approved mileage rates, including the 2011 to 2026 set and the 2026-27 increase.
The policy note that records the 10p rise, the review announced in March 2026, and the commitment to set the outcome out at Budget 2026.
The Treasury's confirmation of the Budget date this page uses as the next decision point.
The employer guidance the 2026-27 rates were published in, and the same channel the 2027-28 figures would appear in.
How mileage allowance relief works when an employer pays less than the approved rate.
Work with the rates that are published today, check the history, or download the records you will need at the start of the year.