For the first time since 2011, HM Revenue & Customs (HMRC) has increased the Approved Mileage Allowance Payment (AMAP) for cars and vans for the first 10,000 of business miles from 45p to 55p per business mile.

This increase was backdated to applying from 6 April 2026.

Updated HMRC Approved Mileage Rates

The updated AMAP rates are:

• First 10,000 business miles – 55p per mile (increase of 10p from 45p);
• Excess over 10,000 business miles – 25p per mile (unchanged); and
• Additional rate for a passenger – 5p per mile (unchanged).

These rates also apply to electric cars and vans.

The AMAP rates don’t apply to company cars that use the different HMRC Advisory Fuel Rates.

What Does This Mean for Employers?

Employers may wish to change their policies relating to business mileage claims by employees where they wish for their mileage expense policies to be consistent with the HMRC AMAP rates. Given that the change was backdated to be effective from 6 April 2026, employers wanting consistency may want to revisit mileage expense claims made under the old AMAP rate.

What Does This Mean for Employees?

Where their employers do not amend their mileage expense policies to be consistent with the HMRC AMAP rates, employees can seek tax relief on the difference between the HMRC AMAP rate and the amount that you have been reimbursed by their employer.

What Does This Mean for Self-Employed Individuals?

Self-employed individuals can use the updated HMRC AMAP rate for business miles undertaken since 6 April 2026.

Need Advice on Business Mileage and Tax Relief?

If you require guidance, our experienced Chartered Accountants and Chartered Tax Advisors can help you understand how the changes may affect your business or personal tax position.