HMRC mileage rates 2026/27
The approved rates cover far more than petrol, which is why they are worth more than people expect and why they do not change with the price at the pump.
The rates
| Vehicle | First 10,000 business miles | Above 10,000 |
|---|---|---|
| Cars and vans, 2026 to 2027 | 55p | 25p |
| Cars and vans, 2011 to 2026 | 45p | 25p |
| Motorcycles | 24p | 24p |
| Bicycles | 20p | 20p |
The first-ten-thousand-mile rate for cars and vans rose to 55p for the 2026 to 2027 tax year, having stood at 45p since 2011. Use the rate for the tax year in which the journey was made, not the current one.
Why the rate drops after ten thousand miles
The higher rate is meant to cover the standing costs of running a car, insurance, road tax, servicing and depreciation, as well as the fuel. Those costs do not double when you drive twice as far, so beyond ten thousand business miles only the running costs remain, and the rate falls to 25p. The ten thousand miles is per employee per tax year, not per vehicle.
What counts as a business mile
Travel to a temporary workplace counts, and so does travel between workplaces during the working day. The ordinary commute from home to a permanent workplace does not, and neither does a detour for private purposes. This is where most incorrect claims begin.
A workplace is generally temporary if you attend it for a limited duration or a temporary purpose, and it stops being temporary if you expect to spend more than forty per cent of your working time there over a period exceeding twenty-four months.
If your employer pays less than the approved rate
You can claim tax relief on the difference. If your employer pays 25p a mile and the approved rate is 55p, you can claim relief on the remaining 30p a mile.
But relief is not a refund. It is given at your marginal rate of tax, so a claim of £300.00 is worth £60.00 to a basic rate taxpayer and £120.00 to a higher rate one. Understanding that prevents a good deal of disappointment.
If your employer pays more
Anything above the approved rate is treated as taxable pay rather than a tax-free allowance, and is taxed accordingly.
Keep a record
You need dates, destinations, the reason for each journey and the miles. A note on a phone is enough, provided it is made at the time. Reconstructing a year of mileage from memory in April is both painful and unconvincing.
Figures checked against GOV.UK on 18th September 2026, for the 2026 to 2027 tax year.