What the change means for employees and the self-employed

The approved mileage allowance payment (AMAP) rate has increased for the first time since 2011, following an announcement by Chancellor Rachel Reeves in the House of Commons.

From April 2026, employees using their own vehicle for business travel can claim 55p per mile for the first 10,000 miles travelled in a tax year — up from the previous rate of 45p per mile.

What has changed?

The AMAP rate had been frozen at 45p per mile since 2011, despite significant increases in motoring costs over that period. The 10p per mile uplift has been backdated to April 2026, meaning it applies from the start of the current tax year.

The rates at a glance:

• Cars and vans: 55p per mile (first 10,000 miles), then 25p per mile
• Motorbikes: 24p per mile (flat rate, unchanged)
• Bicycles: 20p per mile (flat rate, unchanged)

Who does this affect?

The change is relevant to anyone who uses their own vehicle for work purposes — not commuting, but travel undertaken as part of the job itself. This includes employees such as care workers, field-based staff, and sales representatives, as well as self-employed individuals who drive for work.

If your employer reimburses you at a rate below 55p per mile, you may be entitled to claim tax relief on the difference through HMRC or via your self-assessment return.

What should you do?

If you regularly claim mileage expenses, it is worth:

• Checking whether your employer’s reimbursement policy has been updated to reflect the new rate
• Reviewing any mileage claims already submitted for the 2026/27 tax year, given the backdating to April 2026
• Speaking to your accountant if you are self-employed and want to understand how this affects your tax position

If you would like guidance on how the new mileage rate applies to your circumstances, our tax team would be happy to help. Get in touch with your nearest bk plus office.