Updated UK Mileage Rates for 2026/2027: What Your Business Needs to Know

If your business claims mileage expenses, there’s an important update you need to be aware of. For the first time since 2011, HMRC has increased the approved mileage rate, a long‑awaited change that will affect how employers and self‑employed individuals calculate travel claims.

From the 2026/2027 tax year, the approved mileage rates for cars and vans are:

• 55p per mile for the first 10,000 miles

• 25p per mile for any miles after that

This 10p increase applies only to the first 10,000 miles, while the 25p rate remains unchanged.

Why This Matters for Your Business

Mileage claims are a common area where businesses make mistakes, especially when rates change. Using the correct HMRC rate is essential for:

• Accurate employee expense claims

• Correct bookkeeping and payroll processing

• Staying compliant and avoiding HMRC queries

• Ensuring staff are reimbursed fairly for business travel

If you’re still using the old 45p rate, now is the time to update your systems, spreadsheets and internal policies.

Need Support? Michelle Can Help

If you’d like to discuss how the new mileage rates affect your business, or if you need help with bookkeeping, expenses or payroll processes, get in touch with Michelle at MH Accounting Services. She’s here to make everything simple, accurate and stress‑free.

07527179365

michelle@mhaccountingservicesltd.co.uk