Mileage Rate Increase from April 2026

Chancellor Rachel Reeves has officially announced today (21st May 2026) that the HMRC approved mileage rate for cars and vans has increased, ending a 15 year freeze dating back to 2011. The new rate for cars and vans is 55p per mile for the first 10,000 miles. The rate for the subsequent mileage remains at 25p per mile. Please note that the rates for motorcycles and bicycles have not changed.

It is important to note that this has been back-dated to 6th April 2026, so that it applies to the whole tax year.

The HMRC guidance on this can be found here: https://www.gov.uk/government/publications/rates-and-allowances-travel-mileage-and-fuel-allowances/travel-mileage-and-fuel-rates-and-allowances

If you require any help or advice in this regard, please contact us.