The approved car mileage rate rose from 45p to 55p
On 6 April 2026 HMRC lifted the first-band approved mileage rate for cars and vans by 10p. If you still use a 45p calculator for 2026/27 miles, you will understate the approved amount.
What changed
| Vehicle | 2025/26 | 2026/27 |
|---|---|---|
| Cars and vans, first 10,000 miles | 45p | 55p |
| Cars and vans, after 10,000 miles | 25p | 25p |
| Motorcycles | 24p | 24p |
| Bicycles | 20p | 20p |
| Passenger payment (cars/vans) | 5p | 5p |
Source: HMRC travel mileage and fuel rates (updated 21 May 2026).
What that means in pounds
2026/27: £2,750
Difference: +£500
2026/27: £5,500
Difference: +£1,000
2026/27: £6,000
Difference: +£1,000
Above 10,000 miles the extra stops growing, because the over-threshold rate stayed at 25p.
Which rate should you use?
Use the rate for the tax year the miles belong to. Miles driven from 6 April 2026 fall under 2026/27 (55p). Miles before that date stay on the older rates, even if you claim later.
Employers and employees can still agree a different cash amount. Anything above the approved amount is usually taxable. Anything below may leave room for Mileage Allowance Relief.
Quick answers
When did 55p start?
6 April 2026, the first day of the 2026 to 2027 tax year.
Did bike and motorcycle rates rise?
No. Motorcycles remain 24p and bicycles 20p. Passenger payments remain 5p per passenger per mile for cars and vans.
Where is this published?
On GOV.UK under Travel — mileage and fuel rates and allowances, last updated 21 May 2026 for the 2026/27 figures.