Business mileage rates increase to 55p per mile from April 2026

On 21 May 2026, Chancellor, Rachel Reeves, announced a 10p per mile increase in tax‑free mileage rates will apply in the 2026/27 tax year, backdated to April 2026. 

The increase relates to the amount per business mile driven that attracts tax relief and affects both employees and the self-employed. HMRC’s mileage rates guidance has been updated as follows:

For the self-employed:

For employees:

It is important to note that only the rate for petrol and diesel cars and vans for the first 10,000 miles has increased; other rates are unchanged.

Contact us today at enquiries@teamjs.co.uk if you would like more information on business mileage rates.