← All news & articles
Try our free mileage allowance calculatorTax-free mileage at HMRC's 2026/27 rates — and the tax relief you can claim.
→
Mileage allowance rises to 55p a mile
HMRC's approved mileage rate for cars and vans is now 55p for the first 10,000 business miles.
For the 2026/27 tax year the approved mileage rate for cars and vans rose from 45p to 55p a mile for the first 10,000 business miles. After that it stays at 25p.
The 2026/27 rates
- Cars and vans: 55p for the first 10,000 miles, then 25p
- Motorcycles: 24p
- Bicycles: 20p
- Passengers: 5p per passenger per business mile
Employers can pay up to these rates tax-free. If your employer pays less, you can claim tax relief on the difference. Self-employed people using simplified expenses claim the same rates instead of actual vehicle costs.
Use our mileage calculator to see what you can claim.
Want help with this?Talk to a Beatax accountant — no jargon, no chasing.