If you use your own vehicle for business travel, understanding the HMRC Mileage Rates 2026/27 could help you claim more tax relief this year. Following a long-awaited update, HMRC has increased the approved mileage rate for cars and vans, meaning business owners, employees and company directors may be able to claim more than they could previously.
However, the headline rate increase is not the only thing worth knowing. Many people are unaware of the additional passenger allowance available when carrying colleagues on business journeys.
Let’s take a closer look at what has changed and how you can make sure you’re claiming everything you’re entitled to.
What Are the HMRC Mileage Rates for 2026/27?
HMRC has increased the Approved Mileage Allowance Payment (AMAP) rate for cars and vans from 45p per mile to 55p per mile for the first 10,000 business miles travelled during the tax year. Importantly, the increase has been applied from 6 April 2026.
The current HMRC Mileage Rates 2026/27 are:
| Vehicle Type | Rate |
|---|---|
| Cars and Vans | 55p per mile for the first 10,000 business miles |
| Cars and Vans | 25p per mile thereafter |
| Motorcycles | 24p per mile |
| Bicycles | 20p per mile |
This marks the first increase to the car and van mileage rate in more than a decade and reflects the rising costs associated with running a vehicle.
What Counts as Business Mileage?
Before making a claim, it is important to understand what qualifies as business mileage.
Typically, business mileage includes journeys such as:
- Travelling to meet clients
- Visiting suppliers
- Attending business meetings
- Travelling between work locations
- Visiting temporary workplaces
However, ordinary commuting between your home and permanent workplace does not qualify as business mileage. Therefore, keeping accurate mileage records throughout the year remains essential.
The Passenger Allowance Many People Miss
One of the most overlooked elements of the mileage rules is the passenger allowance.
If you carry a fellow employee in your vehicle for a business journey, you may be able to claim an additional 5p per mile for each passenger.
For example, if you drive 100 business miles and carry one colleague for the entire journey, you could claim:
- 100 miles at 55p = £55
- Passenger allowance = £5
Total claim = £60
If you regularly travel with colleagues to meetings, training events or client visits, these additional amounts can quickly add up over the course of a year.
As a result, it’s worth reviewing your mileage records to ensure you’re not leaving money on the table.
Where Can You Find the Official HMRC Rates?
HMRC publishes the latest mileage rates and guidance on its website.
You can view the official rates and detailed guidance here:
Travel — mileage and fuel rates and allowances – GOV.UK
Since tax rules can change, it’s always worth checking the latest guidance before making a claim.
Why Accurate Mileage Records Matter
Although the rules themselves are relatively straightforward, many people fail to keep sufficient records.
To support a mileage claim, you should record:
- The date of the journey
- The start and end locations
- The business purpose of the trip
- The number of miles travelled
- Any qualifying business passengers
Good record-keeping not only supports your claim but also makes life significantly easier if HMRC ever asks for evidence.
Small Claims Can Lead to Big Savings
Mileage allowances are often overlooked because the amounts involved can seem relatively small on individual journeys.
However, when you add up hundreds or even thousands of business miles across a year, the tax savings can become substantial.
Furthermore, mileage claims are just one example of the many allowances, reliefs and planning opportunities available to business owners.
How a Good Accountant Can Help
Many business owners focus on submitting their accounts and tax returns correctly. While compliance is important, a good accountant does much more than that.
At JDH Accountants, we actively look for opportunities to help clients reduce their tax liabilities and improve their financial position. Whether it’s ensuring you’re claiming the correct mileage allowance, identifying overlooked expenses, or planning ahead for future tax liabilities, proactive advice can often save far more than it costs.
More importantly, it can save you time, stress and uncertainty.
If you’re unsure whether you’re claiming everything you’re entitled to, or you’d like advice tailored to your specific circumstances, our team would be happy to help.
After all, the right advice doesn’t just keep you compliant—it helps your business keep more of what it earns.