HMRC Mileage Rate 2026: 55p Per Mile – And You Can Backdate It to April.
Did your accountant tell you HMRC has increased the car and van mileage rate from 45p to 55p per mile?
If you use your own car or van for business, there’s an important change you need to know about.
From 6 April 2026, HMRC increased the approved mileage rate for cars and vans from 45p to 55p per business mile for the first 10,000 miles in the tax year.
And here’s the bit many business owners may have missed:
The increase is backdated to 6 April 2026.
So, if you’ve already been recording business mileage since the start of the 2026/27 tax year, it’s worth checking whether you’re claiming the correct amount.
At Honest Accounting, we believe your accountant shouldn’t just process your figures. They should be keeping you informed about changes that could affect your business and helping you make sure you’re claiming everything you’re legitimately entitled to.
HMRC mileage rate 2026: what’s changed?
For the 2026/27 tax year, the HMRC approved mileage allowance for cars and vans is:
| Vehicle | First 10,000 business miles | Over 10,000 miles |
|---|---|---|
| Car or van | 55p per mile | 25p per mile |
| Motorcycle | 24p per mile | 24p per mile |
| Bicycle | 20p per mile | 20p per mile |
The car and van rate had been 45p per mile since 2011, so this is the first increase in more than 15 years.
You can read the official guidance on the GOV.UK: increase to mileage rates from 6 April 2026.
What does the 10p increase mean for you?
It might not sound like much, but if you regularly travel for business, it can quickly add up.
For example:
- 1,000 miles: £100 additional mileage
- 5,000 miles: £500 additional mileage
- 10,000 miles: £1,000 additional mileage
So, if you’ve travelled 5,000 qualifying business miles since 6 April and were still using the old 45p rate, the difference could be £500.
That’s money worth checking.
Can you backdate the 55p mileage rate?
Yes.
The new 55p rate applies retrospectively from 6 April 2026, rather than from the date the increase was announced.
That means businesses and self-employed individuals should review mileage recorded from the beginning of the 2026/27 tax year.
If you’ve already claimed mileage at 45p per mile, the correct way to deal with the difference will depend on your circumstances and how you’re claiming the expense.
This is exactly the sort of thing we’d encourage you to discuss with your accountant rather than simply assuming your existing records are fine.
What if you’re self-employed?
If you’re self-employed and use HMRC’s simplified expenses method for your vehicle, the new rate is 55p per mile for the first 10,000 business miles, reducing to 25p per mile thereafter.
For example:
8,000 business miles × 55p = £4,400
Under the previous 45p rate, the calculation would have been £3,600.
That’s a difference of £800.
However, simplified mileage isn’t automatically the best option for every business. Depending on your circumstances, calculating actual vehicle expenses and claiming appropriate capital allowances may produce a different result.
HMRC’s guidance on simplified expenses can be found on GOV.UK: simplified expenses for vehicles.
What if you run a limited company?
If you operate through a limited company and use your own vehicle for qualifying business journeys, your company can generally reimburse you using HMRC’s approved mileage rates.
For cars and vans, that is now 55p per mile for the first 10,000 business miles and 25p thereafter.
If your company has continued paying 45p since April, it’s worth checking whether the retrospective increase needs to be reflected in your records or future payments.
HMRC’s guidance on business travel and mileage expenses is available on GOV.UK: expenses and benefits – business travel mileage rules.
What counts as business mileage?
The 55p rate doesn’t mean you can claim 55p for every mile you drive.
It applies to qualifying business journeys.
Depending on your circumstances, this could include travelling to customers, suppliers, temporary workplaces or between business locations.
Ordinary commuting between your home and a permanent workplace generally doesn’t qualify.
You should also keep accurate mileage records, including:
- Date of the journey
- Starting point and destination
- Business purpose
- Number of business miles
- Vehicle used
Good records help you support your claim and make it much easier for your accountant to deal with your accounts accurately.
Did your accountant tell you?
This is where we think having the right accountant makes a difference.
It’s one thing for an accountant to prepare your accounts and calculate your tax bill.
It’s another to have someone who keeps an eye on changes that could affect your business and actually tells you about them.
The HMRC mileage rate increase is a good example.
If you’re regularly driving for business, the additional 10p per mile could be worth hundreds of pounds over the year.
And because the change applies from 6 April 2026, it’s not something you should wait until your year-end accounts to think about.
Honest Accounting: more than just keeping the books
At Honest Accounting, our aim is to make your accounting simple, efficient and always compliant.
But we also want your accountant to be someone you can turn to when the rules change or you want to know whether you’re doing things in the most tax-efficient way.
We can help you:
- Review your business mileage and expense claims
- Check that you’re using the correct HMRC rates
- Identify whether your historic mileage needs updating
- Keep your bookkeeping and records organised
- Understand the tax implications of your business decisions
- Make sure you’re not overlooking legitimate business expenses
Good accounting shouldn’t just tell you what happened. It should help you make better decisions about what happens next.
Think you’re still using the old 45p rate?
Don’t worry — the important thing is to check your records from 6 April 2026 onwards.
If you’ve been using 45p per mile, speak to your accountant about how the additional 10p should be dealt with.
And if your accountant hasn’t mentioned the change at all, perhaps it’s time to ask them why.
If you’d like an accountant who keeps you informed rather than simply waiting for you to ask, Honest Accounting is here to help.
Call us on 0333 138 0003 to find out how we can support your business.
Thinking of switching accountants?
It’s easier than you think. Honest Accounting takes care of the switch for you, with clear fees, straightforward support and 50% off your first three months when you switch before 30 September 2026.Find out how to switch and save.
Honest Accounting. Simple. Efficient. Always Compliant.