HMRC's approved mileage allowance for cars and vans is now 55p a mile for the first 10,000 business miles in the tax year and 25p a mile after that, up from 45p for journeys in earlier tax years. Motorcycles stay at 24p and bicycles at 20p, and employees can claim tax relief on any gap between these rates and what their employer pays.
For well over a decade, "45p a mile" was the number everyone knew. It's out of date. HMRC raised the approved rate for cars and vans to 55p a mile for the first 10,000 business miles from the 2026 to 2027 tax year. Plenty of expense policies, calculators and articles haven't caught up, so if you drive for work, check what you're being paid and what you're claiming.
The HMRC approved mileage rates
| Vehicle | First 10,000 business miles | Each business mile over 10,000 |
|---|---|---|
| Cars and vans | 55p | 25p |
| Motorcycles | 24p | Same rate |
| Bicycles | 20p | Same rate |
These apply from the 2026 to 2027 tax year. For miles in the 2025 to 2026 tax year and earlier, the car and van rate for the first 10,000 miles was 45p; the other rates are unchanged. There's also a passenger payment of 5p per passenger per business mile when you carry colleagues who are also travelling for work.
Employees: claiming the difference
If you use your own vehicle for work and your employer pays you less than the approved rate, or nothing, you can claim tax relief on the difference. HMRC's steps:
- Keep records of the dates and mileage of your work journeys.
- Add up the mileage for each type of vehicle you've used.
- Work out the approved amount at the rates above.
- Take away anything your employer paid you towards your costs.
- Claim tax relief on the rest, sending HMRC copies of your mileage logs.
You can claim for the current tax year and the 4 previous tax years. If you file a Self Assessment return, you claim through the return instead.
A worked example
You drive 6,000 business miles in your own car in the 2026 to 2027 tax year and your employer pays 30p a mile. The approved amount is 6,000 times 55p, which is 3,300 pounds. Your employer paid 1,800 pounds. You can claim tax relief on the 1,500 pound difference. As a basic-rate taxpayer that's worth 300 pounds in tax. These sums are mine, from HMRC's published figures. A higher-rate taxpayer would get more back on the same claim.
The commuting rule
Mileage relief doesn't cover travelling to and from your normal place of work. GOV.UK says it only covers that journey if it's to a temporary place of work. Driving from the office to a client, or between sites during the day, counts. Driving from home to your usual office doesn't.
Bikes and motorbikes
Cycling or riding a motorbike for work counts too. The rates are 20p a mile for bicycles and 24p for motorcycles, with no drop after 10,000 miles. They're small amounts per mile, but for couriers or anyone cycling between sites, they add up over a year and are just as claimable.
What the rate covers
HMRC says the approved mileage rate covers the cost of owning and running your vehicle. That means you can't claim fuel, insurance, servicing or wear and tear on top of it for the same miles. It's one figure per mile that's meant to include all of that.
Self-employed: simplified expenses
If you're a sole trader, you can use simplified expenses to claim vehicle costs at a flat rate per business mile instead of adding up your real running costs. It's optional, and you can compare the two with GOV.UK's simplified expenses checker. Limited companies can't use simplified expenses. Either way, keep a record of your business miles through the year.
Keeping a mileage log HMRC will accept
When employees claim, HMRC asks for copies of the mileage logs. A log that holds up shows, for each trip:
Want AI doing the heavy lifting in your marketing?
I build the systems that handle the boring 80 percent, so you get your week back. Done properly, with the human kept in.
- The date.
- Where you started and where you went.
- The business reason for the journey.
- The business miles driven.
Keep it as you go. Rebuilding a year of journeys from memory is where claims fall apart. If you claim for more than one job, GOV.UK says you send a log for each.
Over 10,000 miles
The higher rate only applies to the first 10,000 business miles in the tax year. After that, every business mile is at 25p. So a sales rep who drives 15,000 business miles gets 10,000 at 55p and 5,000 at 25p, which is 6,750 pounds in total. These sums are mine, worked from HMRC's published figures, and they show why high-mileage drivers see a smaller average per mile.
Check your employer's policy
If your employer still pays 45p for the first 10,000 miles, you're now being paid below the approved rate, and the gap can be claimed as tax relief. It's also worth raising with your employer, since many policies were simply written around the old figure.
My verdict
If you drive your own car for work, the move to 55p is the biggest change to mileage in years. Update your log, check your employer's rate, and claim the gap if they pay less. Self-employed drivers should run the simplified expenses checker each tax year. For the wider picture, see sole trader vs limited company and receipt scanner apps for the rest of your expenses.
Frequently asked questions
What is HMRC's mileage allowance?
55p a mile for the first 10,000 business miles in a car or van from the 2026 to 2027 tax year, then 25p a mile.
Is the HMRC mileage rate still 45p?
Only for journeys in earlier tax years. From the 2026 to 2027 tax year the first 10,000 miles rate is 55p.
Can I claim mileage for my commute?
No, unless you're travelling to a temporary place of work.
How far back can I claim mileage tax relief?
For the current tax year and the 4 previous tax years.
What's the HMRC mileage rate for a motorbike or bicycle?
24p a mile for motorcycles and 20p a mile for bicycles.
