New HMRC Approved Mileage Rates (from 6 April 2026)

From 6 April 2026, HMRC has increased the approved mileage rate for cars and vans for the first 10,000 business miles travelled in a tax year.

New HMRC Approved Mileage Rates (from 6 April 2026)

Vehicle Type	First 10,000 Business Miles	Over 10,000 Business Miles
Cars and vans	55p per mile	25p per mile
Motorcycles	24p per mile	24p per mile
Bicycles	20p per mile	20p per mile

This represents an increase from the previous rate of 45p per mile for the first 10,000 business miles for cars and vans.

Passenger Payments

HMRC’s approved passenger payment remains unchanged at:

• 5p per passenger per business mile

This applies where employees carry fellow employees in a car or van for qualifying business journeys.

What This Means for Businesses

If your business reimburses employees using HMRC approved mileage rates, you may wish to:

• Review and update internal mileage reimbursement policies
• Amend payroll or expense systems from April 2026
• Ensure employees are aware of the new rates

If mileage is reimbursed above HMRC approved rates, there may be additional tax and National Insurance implications.

Company Cars

Please note these mileage rates relate to employees using their own vehicles for business travel. Different rules apply for company cars, where tax charges are based on factors including the vehicle’s list price, CO2 emissions and fuel type.

You can read HMRC’s full guidance here.

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