New mileage rates from HMRC
HMRC have (finally) increased the approved milage rate for travel. The new rate applicable to the 2026/27 tax year onwards is as below with a 5p supplement for carrying passengers.
| Vehicle Type | First 10,000 miles | Over 10,000 miles |
| Cars & Vans | 55p | 25p |
| Motorbikes | 24p | 24p |
| Bicycles | 20p | 20p |
These rates are the maximum before a Benefit in Kind tax applies, employers can pay less than this (with individuals needing to claim Tax Relief themselves for the difference).
