HMRC increased the mileage rate to 55p per mile from 6 April 2026, backdated meaning many people are owed top‑up payments.
After 15 years of unchanged mileage rates, HMRC has finally responded to rising fuel costs.
What changed?
- Mileage rate for cars/vans increased from 45p to 55p per mile.
- Applies to the first 10,000 miles per tax year.
- Backdated to 6 April 2026.
- Beyond 10,000 miles, the rate remains 25p.
Who benefits?
- Employees using personal vehicles for business
- Sole traders
- Contractors
Backdated payments
If you were reimbursed at the old rate, you are entitled to the difference. Employers may:
- Make a top‑up payment
- Or individuals can claim Mileage Allowance Relief
Final thought
This change provides welcome relief but only if you claim correctly.