HMRC approved mileage rates 2026/27
On 21 May 2026 the government raised the car rate from 45p to 55p a mile — the first rise in 15 years — backdated to 6 April 2026, so it covers the whole 2026/27 tax year.
Rules by vehicle type
| Vehicle (your own) | First 10,000 business miles | Over 10,000 |
|---|---|---|
| Car or van (petrol, diesel, hybrid or electric) | 55p | 25p |
| Motorcycle | 24p | 24p |
| Bicycle | 20p | 20p |
| Each work passenger in your car | 5p | 5p |
If your employer pays less than the approved amount, you can claim Mileage Allowance Relief on the difference (tax relief at your rate). If they pay more, the excess is taxable. The same 55p/25p rates apply to simplified motor expenses for the self-employed.
Advisory fuel rates for company cars (from 1 September 2026)
| Engine size | Petrol | LPG |
|---|---|---|
| 1,400cc or less | 14p | 11p |
| 1,401–2,000cc | 17p | 13p |
| Over 2,000cc | 27p | 20p |
| Engine size | Diesel |
|---|---|
| 1,600cc or less | 15p |
| 1,601–2,000cc | 16p |
| Over 2,000cc | 22p |
Fully electric company cars: 7p a mile (home charging) or 15p (public charging). Hybrids use the petrol or diesel rate. Previous rates can be used for up to one month after a change.
Where the model figures come from
One specific version per model, taken from the manufacturer’s own UK price list: Toyota GB price lists effective 1 June 2026 (C-HR Plug-in: 6 January 2026) — “list price for VED renewal purposes”; Nissan UK business pages (P11D, 2026/27); Kia UK pricing pages (P11D); Škoda UK brochures effective October 2026 (P11D); Tesla UK website on-the-road cash price (November 2026); Ford Puma CO2 from TrustFord (Ford’s retail group). No verified current list price for the Ford Puma or Tesla Model Y, so enter your own. For the two Toyota plug-in hybrids the exact electric range is not in the price list; Toyota’s quoted BIK rate places both in the 40–69 mile band, so the preset uses 40 miles. Engine sizes are those of the engine named in the version. Prices change often — list prices from the manufacturer, check the current price. Models chosen from the SMMT best-sellers (Ford Puma, Kia Sportage, Nissan Qashqai and Juke were the top four in 2025; Tesla Model 3 and Model Y lead EV sales in 2026). VW Golf/Tiguan, Vauxhall Corsa, MINI, MG HS and Jaecoo 7 are not listed because we could not verify a current UK price list for them.
FAQ
Is the mileage allowance 45p or 55p?
55p a mile for the first 10,000 business miles in a car or van, from 6 April 2026. It was 45p until 2025/26. Over 10,000 miles it stays 25p.
How much can I claim if my employer pays 45p?
For 12,000 business miles the approved amount is £6,000 (10,000 × 55p + 2,000 × 25p). At 45p you were paid £5,400, so you can claim relief on £600 — worth £120 at 20% or £240 at 40%.
What is the mileage rate for electric cars?
In your own electric car you get the same 55p/25p. In a company electric car the advisory electricity rate is 7p a mile for home charging or 15p for public charging (from 1 September 2026).
Can I claim 5p for passengers?
Your employer can pay 5p per passenger per business mile tax-free, but you cannot claim relief if they do not pay it.
Sources: GOV.UK “Travel – mileage and fuel rates and allowances” (55p rate, updated 21 May 2026); ATT news 21 May 2026 (written statement HCWS62, backdated to 6 April 2026); GOV.UK “Advisory fuel rates” (rates from 1 September 2026, updated 21 August 2026); Ross Martin Tax Consultancy. Checked 5 November 2026.