Increase in Mileage Rate for 2026-27
If you need to use your car for work in the UK (not simply just for travelling to or from work) you’ll now be able to claim tax relief on 55p per mile for the first 10,000 miles driven in the tax year. This is up 10p from 45p per mile.
If you drive as part of your work, for example you’re a care worker driving from house-to-house, your employer can cover your costs per mile with what’s called an ‘Approved Mileage Allowance Payment’, on which you pay neither tax or National Insurance.
This allowance has been frozen at 45p per mile for the first 10,000 miles driven in each tax year since 2011. But it has now increased by 10p to 55p per mile, backdated to April 2026.
