10/06/2026
The Chancellor, Rachel Reeves, has announced an increase to the approved mileage allowance rates for employees and workers using their own vehicles for business journeys.
From 6 April 2026, the tax-free mileage rate for cars and vans has increased from 45p to 55p per mile for the first 10,000 business miles each tax year. The rate for mileage above 10,000 miles remains at 25p per mile. (MoneySavingExpert.com)
This is the first increase in over a decade and is designed to help offset rising motoring costs for those who rely on their own vehicles for work. The change has also been backdated to April 2026, meaning it applies to eligible business mileage already undertaken in the current tax year. (MoneySavingExpert.com)
📩 If you would like advice on mileage claims, business expenses, or tax relief available to employees and the self-employed, the team at Ashdown Hurrey would be happy to help.