Updated October 29, 2026
From 6 April 2026, HMRC's approved mileage rate for cars and vans is 55p a mile for the first 10,000 business miles in the tax year, then 25p a mile after that. It had been 45p since 2011. Motorcycles stay at 24p a mile and bicycles at 20p.
| Vehicle | First 10,000 miles | After 10,000 |
|---|---|---|
| Cars and vans | 55p | 25p |
| Motorcycles | 24p | 24p |
| Bicycles | 20p | 20p |
Per business mile, 2026 to 2027 tax year. Before 6 April 2026 the car and van rate was 45p for the first 10,000 miles. Employers can also pay 5p a mile tax free for each colleague you carry on a work trip.
Employees. If your employer pays you a mileage allowance for driving your own car for work, they can pay up to these rates without it being taxed. If they pay less, or nothing, you can claim tax relief on the difference. HMRC calls it Mileage Allowance Relief.
The self-employed. Sole traders using simplified expenses claim business miles at the same flat rates, instead of working out what the car actually cost to run. You can't do that for a vehicle you've already claimed capital allowances on.
You're employed and drive your own car for work. In the 2026/27 tax year you drive 12,400 business miles, and your employer pays you 35p a mile.
| 10,000 miles at 55p | £5,500.00 |
| 2,400 miles at 25p | £600.00 |
| HMRC's approved amount | £6,100.00 |
| Your employer paid 12,400 at 35p | £4,340.00 |
| You can claim relief on | £1,760.00 |
Relief on £1,760 is worth £352 if you pay tax at 20%, or £704 at 40%.
The rate goes by the tax year you drove in. A trip on 5 April 2026 is at 45p, and a trip on 6 April is at 55p. Your 10,000 miles start again from zero every 6 April.
For a Mileage Allowance Relief claim, GOV.UK asks for copies of your mileage logs showing the reason for each trip and its start and end postcodes. Keep the date and miles of each trip, your totals for each vehicle, and what your employer paid you. Our free A4 mileage log has postcode columns.
Driving between home and your usual workplace is commuting and doesn't count. A temporary workplace can. You can claim for the current tax year and the four before it, at the rate for each year.
This is general information, not tax advice. Check with a tax adviser about your own return.
Our iPhone app Milepost runs on the 6 April tax year with HMRC's rates, and does the 10,000 mile split for you. Coming soon to the App Store.