As of 6th April 2026, HMRC updated the approved mileage rates for 2026/2027: Cars and vans: £0.55 per mile for the first 10,000 miles, £0.25 thereafter; Motorcycles: £0.24 per mile; Bicycles: £0.20 per mile. Passenger rate is 5p per passenger per business mile for shared work journeys
More details are available on the GOV UK website.
As of 6th April 2026, HMRC have updated the approved mileage rates for 2026/2027. The new rates can be found within the following table:
| Vehicle Type | First 10,000 business miles in the tax year | Each business mile over 10,000 in the tax year |
|---|---|---|
| Cars and Vans | £0.55 | £0.25 |
| Motorcycles | £0.24 | £0.24 |
| Bicycles | £0.20 | £0.20 |
Passenger Rate
The rate for passengers is 5p per passenger per business mile for carrying colleagues in a car or van on shared work journeys. Only payments for passengers count. There is no tax relief if you receive less than the approved 5p passenger rate.
Further information can be found on the GOV UK website: Travel mileage and fuel rates and allowances - GOV.UK
Note: It is the employer's responsibility to ensure the correct rates are reflected accordingly within your system.