We are sharing this update from ACCA, our professional body, for the interest of clients and contacts. The content is (c) ACCA
A reminder – New rates backdated to 6 April 2026
Taxpayers who use a vehicle to travel as part of their job will now be better off as the tax-free mileage allowance rates have increased.
Whether mileage costs are paid by an employer, it’s included in their self-assessment tax return as an expense, or taxpayers claim it directly from HMRC as a tax relief, they will now be able to claim more per mile.
The tax-free per mile rate has increased to 55p for the first 10,000 miles and will be backdated to 6 April 2026. The rate increase will be in place until 5 April 2027. The rate will remain at 25p per mile for 10,001 miles and over.
The online and paper forms have now been updated for those who claim their mileage expenses from HMRC through a P87.
For more information on mileage, fuel rates and allowances go to GOV.UK.