Increase in mileage rates for 2026/27
The Government has announced a 10p increase in mileage rates for the whole of the 2026/27 tax year. The mileage rate for cars and vans is now 55p per mile for the first 10,000 business miles in the tax year for 2026/27.
The Government has announced an increase in the mileage rates for cars and vans to 55p per mile for the first 10,000 miles of the tax year. This change is backdated to 6 April 2026 and will have effect for the whole of the 2026/27 tax year.
The increase affects cars and vans only and the first 10,000 miles in the tax year only. All other rates for cars and vans and other vehicles remain unchanged.
The increase applies to approved mileage allowance payments (also known as AMAPs), mileage allowance relief (also known as MAR) and self-employed mileage.
You can read more about the increase to mileage rates on GOV.UK.
We will be updating our website guidance shortly to reflect the change in rates and will publish further information to help taxpayers understand how these changes might affect them.
