Updated October 2026: rates revised following the Budget announced on 28 October 2026.
If you use your own car or van for business travel, you can claim mileage at the approved mileage rates set by HM Revenue and Customs (HMRC). The rates cover all the costs of running the vehicle, including fuel, insurance, servicing and wear and tear.
The approved mileage rates for cars and vans are:
- 55p per mile for the first 10,000 business miles in the tax year (from April 2026)
- 25p per mile for business miles over 10,000, rising to 35p per mile from April 2027
The increase to 55p was announced in Budget 2026. Read our Budget 2026 summary for more.
Who can use the rates
- Employees and directors can be paid up to these rates tax-free by their employer. If your employer pays less, you can claim tax relief on the difference (Mileage Allowance Relief).
- Sole traders and partners can use the rates as a simplified expense in their Self Assessment tax return instead of claiming actual vehicle costs.
Keep a mileage log
To claim, keep a record of each business journey, including the date, start and end points, the purpose of the journey and the miles travelled. Ordinary commuting between home and your normal workplace is private travel and cannot be claimed.
Examples for 2026/27
- 10,000 business miles in the year: 10,000 x 55p = £5,500
- 15,000 business miles in the year: (10,000 x 55p) + (5,000 x 25p) = £6,750
These are examples only. The amount you can claim depends on your own business mileage.
Need help with expenses or your tax return? Contact us, call 0845 862 6009 or message us on WhatsApp.