HMRC mileage rates 2026/27
55p per mile for the first 10,000 business miles. 25p after that.
Updated for 2026/27: HMRC raised the approved mileage rate from 45p to 55p per mile for the first 10,000 business miles, effective 6 April 2026 and backdated. It's the first increase in fifteen years. If you've been claiming at 45p since April, you've been under-claiming by 10p a mile.
The 2026/27 rates in full
Vehicle | First 10,000 business miles | Over 10,000 miles |
|---|---|---|
Cars and vans | 55p | 25p |
Motorcycles | 24p | 24p |
Bicycles | 20p | 20p |
Plus a 5p per mile passenger rate if you carry someone else on the same business journey.
Only the car and van rate changed. Motorcycles, bicycles and the passenger rate all stayed where they were.
Source: GOV.UK. Business travel mileage, rules for tax, which states "55p from 6 April 2026 (45p before 6 April 2026)".
What the change is actually worth
The rate had sat at 45p since 2011. Here's what the extra 10p does at different mileages:
Business miles/year | At 45p (old) | At 55p (2026/27) | Difference |
|---|---|---|---|
2,000 | £900 | £1,100 | +£200 |
5,000 | £2,250 | £2,750 | +£500 |
8,000 | £3,600 | £4,400 | +£800 |
10,000 | £4,500 | £5,500 | +£1,000 |
That's the deduction, not the refund. What lands in your pocket depends on your tax rate. A basic-rate taxpayer keeps 20% of it, plus 6% Class 4 National Insurance relief on top.
At 5,000 miles, the extra £500 of deduction is worth roughly £130 in actual tax and NI saved. Not life-changing. But it's yours, and claiming it costs you nothing beyond recording the journey.
How the 10,000-mile threshold works
The threshold is per tax year, and it resets on 6 April.
Your first 10,000 business miles between 6 April 2026 and 5 April 2027 are claimable at 55p. Everything after that in the same year drops to 25p. On 6 April 2027 the counter goes back to zero and you start at 55p again.
Worked example, 13,000 business miles in 2026/27:
Business miles | Rate | Allowance |
|---|---|---|
First 10,000 | × 55p | £5,500 |
Next 3,000 | × 25p | £750 |
Total (13,000) | £6,250 |
Most people never reach the threshold. If you drive under 10,000 business miles a year, the 25p rate is irrelevant to you, every mile is 55p.
Who can claim, and how
If you're self-employed, you claim mileage as an allowable business expense using HMRC's simplified expenses method. It comes off your taxable profit on your Self Assessment return. You don't need fuel receipts, MOT invoices or servicing records. The flat rate is designed to cover all of it.
The alternative is claiming actual running costs and apportioning them by business use. That can be worth more if you run an expensive vehicle, but once you choose actual costs for a particular vehicle you have to stick with it for as long as you own it. Most people find the flat rate simpler and comparable.
If you're employed and your employer pays you less than the approved rate, you can claim Mileage Allowance Relief on the difference. If they pay more, the excess is taxable.
What counts as a business mile
Journeys that qualify:
Home to a temporary workplace. A venue, a client site, a job
Between two work locations in the same day
To buy business supplies or equipment
To a meeting with a client, agent or accountant
Journeys that don't:
Home to a permanent workplace. That's ordinary commuting
Personal detours on the way
Anything not wholly and exclusively for the business
If a journey is part business and part personal, you claim only the business portion.
What HMRC expects you to keep
For each business journey: the date, the start and end points, the reason, and the miles.
Keep it for five years after the 31 January filing deadline for that tax year. For 2026/27. Filed by 31 January 2028. That means keeping records until 31 January 2033.
A spreadsheet is fine. A notebook is fine. What isn't fine is reconstructing a year of journeys from memory in January, which is what most people end up doing and which is exactly where claims get lost.
The mistake that costs the most
Not recording the journey at all.
Nobody forgets a £400 equipment purchase. Everybody forgets a 60-mile round trip they made on a Tuesday in October. Across a year those trips are usually worth more than every other expense combined, and they're the ones with no receipt to jog your memory.
The second most expensive mistake, this year specifically, is still claiming at 45p. The rate changed quietly in May 2026 and was backdated to April. Plenty of people won't notice until they file.
Claim it automatically
Gigflow works out round-trip mileage from your home to each venue or job, applies the correct rate for the tax year, and tracks the 10,000-mile threshold as you cross it. No logging, no spreadsheet, no January archaeology.
It's built for UK freelancers who travel to work: performers, teachers, and anyone paid per booking. Free for your first 10 jobs.
Going deeper
How to claim mileage as a self-employed musician. Worked examples for performers
What expenses can musicians claim?, the full allowable list
Self-employed musician tax: the complete UK guide. Where mileage fits in your return
Making Tax Digital, why digital mileage records now matter more
Frequently asked questions
Is it still 45p per mile?
No. From 6 April 2026 it's 55p for the first 10,000 business miles. 45p applied to journeys before that date.
What is the HMRC mileage rate for 2026/27?
55p per mile for the first 10,000 business miles, 25p after. Motorcycles 24p, bicycles 20p, both flat.
Does the 10,000-mile threshold reset each tax year?
Yes, on 6 April. Miles don't carry over.
Can I claim mileage if I'm self-employed?
Yes. As an allowable expense on your Self Assessment return, using the simplified expenses method.
Can I backdate my claim to April 2026?
Yes. The 55p rate applies from 6 April 2026, so every qualifying journey since then counts at 55p even if you logged it at 45p.
Do electric cars get a different rate?
No. Electric and hybrid cars use the same 55p/25p rates.
Last updated: 1 August 2026. Written by Lillie Topham, freelance vocalist and Gigflow co-creator. Rates verified against GOV.UK. This is general information, not tax advice, check with an accountant for your own circumstances.
