Rules & rates
Business mileage rates 2026/27: 55p, 25p and how to claim
When staff use their own vehicle for business, employers can pay HMRC's approved mileage rates tax-free. For 2026/27 the car rate is higher than it has been for years.
| Vehicle | First 10,000 business miles | Above 10,000 |
|---|---|---|
| Cars and vans | 55p | 25p |
| Motorcycles | 24p | 24p |
| Bicycles | 20p | 20p |
| Each fellow employee carried as a passenger (car or van) | 5p | 5p |
Source: GOV.UK travel, mileage and fuel rates, tax year 2026 to 2027, checked 27 October 2026.
What to know
- The 10,000-mile threshold counts all business miles in the tax year (6 April to 5 April), not per trip.
- If an employer pays less than the approved rate, the employee can usually claim tax relief on the difference.
- Commuting to a permanent workplace doesn't count as business mileage.