With the cost of running a vehicle continuing to rise, many business owners and employees will welcome HMRC’s increase to the approved mileage rates from 1 April 2026.
If you use your own car for business journeys, this change means you may now be able to claim a little more towards the cost of fuel, servicing, insurance, repairs and general wear and tear.
The New Mileage Rates
From 1 April 2026, the approved HMRC rates are:
- 55p per mile for the first 10,000 business miles each tax year
- 25p per mile for business mileage over 10,000 miles (this rate hasn’t been changed)
These rates can be used by both company directors and employees who use their own vehicle for business travel.
Electric Cars Are Included Too
Importantly, these rates also apply to electric cars.
There is sometimes confusion around this, but HMRC does not currently have a separate mileage rate for electric vehicles. So whether your car is petrol, diesel, hybrid or fully electric, the same approved rates apply.
What Can You Claim For?
Business mileage normally includes journeys such as:
- Visiting clients or customers
- Travelling to meetings
- Going to temporary work locations
- Travelling between different business premises
Unfortunately, normal commuting between home and your regular workplace is still not allowable.
Why Keeping Records Matters
To make a valid claim, it’s important to keep a simple mileage log showing:
- The date of the journey
- Where you travelled to and from
- The reason for the trip
- The number of miles travelled
This doesn’t need to be complicated. A spreadsheet, notebook or mileage tracking app is usually enough, as long as the records are accurate. We can provide you with a simple spreadsheet for this or you can download from the bottom of this page – https://dna-accountants.co.uk/resources/
A Helpful Increase for Many Businesses
Although this increase may seem small, it can make a noticeable difference over the course of a year, particularly for businesses and employees who spend a lot of time on the road.
If you’re unsure whether you are claiming mileage correctly, or would like advice on the most tax-efficient way to reimburse travel costs through your business, we’re always happy to help.