For the first time in 15 years, HMRC have increased the approved mileage rate for business mileage!

The approved rate is now 55p a mile (increase from 45p a mile) and the change has been backdated to 6^th April 2026.

Once 10,000 business miles have been driven in a tax year the rate reduces to 25p a mile (unchanged).

 

This is the rate for self-employed or employees driving their own cars.

The advisory fuel rates for business miles in a company car are separate to the approved mileage rates and are reviewed quarterly by HMRC.

 

Travel — mileage and fuel rates and allowances - GOV.UK