>Good news for business drivers — HMRC has increased the approved mileage allowance rates from the 2026/27 tax year.
From 6 April 2026, drivers using their own cars or vans for business journeys can claim:
🚗 55p per mile for the first 10,000 business miles
🚗 25p per mile after 10,000 miles
The previous 45p rate had remained unchanged for many years, despite rising fuel, servicing and running costs — so this increase will be welcomed by many sole traders and employees alike.
Other approved rates remain unchanged:
🏍 Motorcycles: 24p per mile
🚲 Bicycles: 20p per mile
These rates can be used instead of claiming actual vehicle expenses, provided the mileage method is used correctly from the start.
Important reminder:
Travel between your home and your normal workplace is usually considered ordinary commuting and cannot be claimed as business mileage.
If you are unsure which method is more tax-efficient for you — mileage allowance or actual costs — we are happy to help.
