HMRC's approved rates for cars and vans rose to 55p a mile for the first 10,000 business miles from 6 April 2026. Before that date the rate was 45p. Above 10,000 miles in the tax year it stays at 25p. Motorcycles are 24p and bicycles 20p.
The 10,000 mile line is counted per tax year, which runs 6 April to 5 April. A trip that crosses the line is split, and the log marks it. A trip on 5 April 2026 is paid at the old rate, and one on 6 April at the new.
Who it is for
Employees who use their own car for work can claim relief on the gap if their employer pays less than the approved rate. Sole traders using simplified expenses can use the same per-mile figures instead of tracking running costs.
Keep the log: date, start, destination, reason and miles. HMRC can ask to see it. Add a passenger payment of 5p a mile separately if you carry colleagues.