After 15 years on ice, HMRC’s mileage allowance is finally thawing out.

From 6 April 2026, the tax-free rate for cars and vans jumps to 55p per mile for the first 10,000 business miles – the biggest shake-up since 2011. Even better: it’s backdated to the start of the tax year, so every business mile you’ve already driven this year is worth more than you thought.

The headline numbers:

• 55p per mile for the first 10,000 business miles (up from 45p)
• 25p per mile for anything beyond that
• If your employer pays less than 55p, you can claim tax relief on the difference
• Self-employed? You can claim the full 55p through your Self-Assessment return

Put it in real money: clock up 8,000 business miles this year and you’re £800 better off in tax-free allowance compared with the old rate. That’s not pocket change, especially with running costs only heading one direction.

The one thing that can trip people up isn’t the rate, it’s the paperwork. Keep a simple log of the date, destination, purpose and distance for every business trip. It takes seconds per journey and saves a headache if HMRC ever comes knocking.

Whether you’re claiming as a sole trader or reimbursing a team of drivers, now’s the moment to check you’re squeezing every penny out of the new rates. Not sure how it applies to you? Get in touch, we’ll make sure nothing’s left behind in the rear-view mirror.