HMRC has increased its Approved Mileage Allowance Payment (AMAP) rate for cars and vans from 45p to 55p per mile for the first 10,000 business miles travelled in a tax year. The change applies from 6 April 2026 and represents the first increase to the rate since 2011.
The rate for business mileage above 10,000 miles remains unchanged at 25p per mile. Rates for motorcycles (24p per mile), bicycles (20p per mile) and the additional passenger payment (5p per mile) are also unchanged.
The approved mileage rate is the maximum amount that employers can reimburse employees for using their own vehicle for business travel without creating a tax or National Insurance liability.
Schools, academies and MATs should review their mileage reimbursement policies to determine whether any changes are required. Employers are not obliged to increase their mileage rate to 55p per mile, but employees may be able to claim tax relief from HMRC if they are reimbursed at a lower rate.