HMRC mileage rates 2026/27: 55p a mile
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, up from 45p, and 25p a mile after that. Motorcycles are 24p and bicycles 20p a mile. These are the tax-free amounts an employer can pay when employees use their own vehicle for work.
Rates from HMRC, checked 28 October 2026.
Mileage claim calculator
The tax-free amount for the year, and what the employer or employee owes or can claim.
Running your own fleet instead? A speed limiter cuts the fuel on every fast mile.
Talk to us about fleet fuel costsApproved mileage rates for 2026 to 2027
| Vehicle | First 10,000 miles | Above 10,000 miles |
|---|---|---|
| Cars and vans (from 6 April 2027, announced) | 55p | 35p |
| Cars and vans (from 6 April 2026) | 55p | 25p |
| Cars and vans (before 6 April 2026) | 45p | 25p |
| Motorcycles | 24p | 24p |
| Bicycles | 20p | 20p |
The 10,000-mile threshold counts all business miles in the tax year, even across more than one vehicle. Electrically assisted pedal bikes use the bicycle rate; other electric bikes use the motorcycle rate. National Insurance uses 55p for every business mile in a car or van, with no 10,000-mile step.
Mileage rates or advisory fuel rates?
Employee's own car or van
Approved mileage rates: 55p, then 25p. Covers fuel and the cost of owning the vehicle.
Company car
Advisory fuel rates: fuel only, by engine size, from 15p to 27p a mile. They change every quarter.
Company van fleet
The business pays the fuel directly, so every mile costs what the pump charges. That is where speed matters: a diesel van at 60 mph uses 14.5% less fuel per mile than at 68 (DfT).
Guides
Questions people ask
What is the HMRC mileage rate for 2026/27?
55p a mile for cars and vans for the first 10,000 business miles in the tax year, and 25p a mile after that. The 55p rate applies from 6 April 2026; before that it was 45p. Motorcycles are 24p and bicycles 20p a mile. The 28 October 2026 Budget raises the rate above 10,000 miles to 35p from 6 April 2027.
How do I calculate a mileage claim?
Multiply the first 10,000 business miles in the tax year by 55p and any miles above that by 25p. For 12,000 miles that is 10,000 x 55p plus 2,000 x 25p, which is £6,000.
What if my employer pays less than the HMRC rate?
You can claim Mileage Allowance Relief from HMRC on the difference between what you were paid and the approved amount. If your employer pays more, the extra is taxable and goes on a P11D.
Does the mileage rate apply to electric cars?
Yes. The approved mileage rate is the same 55p for any car or van an employee owns, whatever the fuel. The separate advisory fuel rates, including 7p for home-charged electric cars, are only for company cars.
How much of 55p a mile is fuel?
At this week's prices, a petrol car at 45 mpg uses about 17.6p of fuel a mile and a diesel van at 36 mpg about 25.2p. The rest of the rate is meant to cover wear, servicing, insurance and depreciation.
Is a company van cheaper than paying mileage?
For high-mileage drivers it can be. At 55p and 25p, 20,000 business miles cost £8,000 in mileage payments, while the fuel for a 36 mpg diesel van over the same miles is about £5,032 at this week's price. Compare that gap with the lease, insurance and running costs of a company van.
Sources and method
- HM Revenue and Customs, Business travel mileage for employees' own vehicles. Approved mileage allowance payments, checked 28 October 2026
- HM Treasury, Budget 2026: overview of tax legislation and rates. Measure 2.7: rate above 10,000 miles rises to 35p from 6 April 2027
- Department for Energy Security and Net Zero, Weekly road fuel prices. Fuel cost per mile uses the week of 26 October 2026
- DfT TAG data book v2.03 (May 2026), Table A1.3.8. Fuel use against speed
Work it out in the calculator above.
DfT's fuel curves show a diesel van at 60 mph uses 14.5% less fuel per mile than at 68 mph.
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