What It Could Mean for You
HMRC recently announced changes that caught the attention of thousands of team members and business owners alike – the approved work mileage allowance for the first 10,000 business miles has increased from 45p to 55p per mile, backdated to April 2026.
For anyone using their own car for work, this could make a real difference.
And honestly? It’s probably overdue.
Fuel, insurance, repairs, servicing and vehicle costs have all risen significantly over recent years, yet the mileage rate has stayed the same since 2011. These changes which were implemented on 21 May 2026, could finally bring a bit of relief to people regularly covering business miles in their own vehicle.
The New HMRC Approved Mileage Rates
The updated HMRC Approved Mileage Allowance Payments (AMAP) rates for 2026 to 2027 are now:
| Vehicle Type | First 10,000 business miles in the tax year | Each business mile over 10,000 in the tax year |
| Cars and vans | 55p | 25p |
| Motorcycles | 24p | 24p |
| Bicycles | 20p | 20p |
What Does This Actually Mean?
If you use your personal vehicle for business travel, your employer can reimburse you up to the approved mileage rate tax-free.
Under the new HMRC rates:
- The first 10,000 business miles can now be paid at 55p per mile
- Mileage above 10,000 miles remains at 25p per mile
So, if you drove 8,000 business miles in a year, the tax-free reimbursement could increase by £800 compared to the current rate.
That could make a noticeable difference over the course of a year.
And If Your Employer Pays Less?
This is the part many people miss.
If your employer only pays, say, 30p per mile, you may be able to claim tax relief on the difference between what you received and the approved HMRC rate.
Using the new HMRC mileage allowance rates:
- Approved rate: 55p
- Employer pays: 30p
- Difference: 25p per mile
You may then be able to claim tax relief on that 25p shortfall, claim on your
self-assessment tax return or notify HM Revenue and Customs.
For team members regularly travelling for work, especially in sectors like care, construction, sales and consultancy, this could be worth checking properly.
Business Owners Should Pay Attention Too
For limited company directors and owner-managed businesses, mileage claims are often one of the simplest and most tax-efficient ways to extract money from the business correctly.
In many cases, using your own vehicle and reclaiming business mileage can still be more tax-efficient than having a company car.
But there’s a catch.
You need proper records.
Without an accurate mileage log, HMRC can challenge your claims and vague estimates won’t help if you’re ever asked to justify the figures.
That’s exactly why we created our Business Mileage Recorder.
A Simple Way To Stay Organised
Our free GreenStones Business Mileage Recorder helps you track:
- Dates of journeys
- Start and end locations
- Business purpose
- Total mileage travelled
Simple systems usually work best.
And when tax rules change, having accurate records already in place puts you in a much stronger position.
If you’d like a copy of our free GreenStones Business Mileage Recorder, get in touch and we’ll happily send one over.
One Final Point…
The updated mileage rates are now in force and backdated to April 2026, which means now is a good time to review how you currently record and reclaim business mileage.
But it’s a useful reminder of something we say regularly at GreenStones:
Small tax opportunities add up when you actually keep track of them.
If you haven’t reviewed your mileage claims for a while, now’s probably the right time.
If you’re unsure whether you’re claiming mileage correctly, or whether a company car still makes sense for you, we can help you work out the most tax-efficient option for your situation.
Call GreenStones on 01733 371180 or email advice@greenstones.co.uk.