HMRC mileage rates for 2026 to 2027: cars, vans, bikes

HMRC's approved mileage rates for the 2026 to 2027 tax year are 55p a mile for the first 10,000 business miles in a car or van, then 25p a mile after that. Motorcycles are 24p a mile and bicycles 20p a mile, with no change after 10,000 miles. Before 6 April 2026, the car and van rate was 45p.

These rates are used in two ways. Employers can pay them to staff tax-free, and the self-employed can use most of them as a flat rate instead of adding up their real running costs. This guide sets out the figures, how the 10,000-mile rule works, and a few worked examples.

The rates, tax year by tax year

The rates below are from GOV.UK's travel, mileage and fuel rates page, checked in November 2026. A tax year runs from 6 April to the following 5 April.

Vehicle	2026 to 2027 (from 6 April 2026)	2011 to 2012 up to 2025 to 2026
Car or van, first 10,000 business miles	55p	45p
Car or van, each mile over 10,000	25p	25p
Motorcycle, every business mile	24p	24p
Bicycle, every business mile	20p	20p
Passenger (employees only), per passenger per mile	5p	5p

HMRC's Employment Income Manual groups vehicles into three kinds. Cars and vans include electric and hybrid models. Electrically assisted pedal cycles count as bicycles. Other electric bikes use the motorcycle rate.

You can check what your own miles come to with our mileage claim calculator.

How the 10,000-mile rule works

The higher car and van rate applies only to the first 10,000 business miles in a tax year. Every business mile after that is at 25p. The count starts again on 6 April.

A few points that trip people up:

• It counts business miles only. Driving to the shops or commuting to your normal workplace does not use up the 10,000.
• It is per kind of vehicle. For employees, HMRC's Employment Income Manual adds together miles for vehicles of the same kind. If you drive two cars for work in the same year, their business miles share one 10,000-mile threshold.
• Motorcycles and bicycles have no threshold. Their rate stays the same however far you go.
• The rate depends on when the miles were driven. Miles driven up to 5 April 2026 use 45p. Miles from 6 April 2026 use 55p.

Worked examples

All figures use the 2026 to 2027 rates unless stated.

Self-employed, 12,000 business miles in a car

• First 10,000 miles at 55p: £5,500
• Next 2,000 miles at 25p: £500
• Total: £6,000

GOV.UK's own example on the simplified expenses page works the same way: 11,000 miles comes to £5,500 plus £250, so £5,750.

The same miles in 2025 to 2026

• First 10,000 miles at 45p: £4,500
• Next 2,000 miles at 25p: £500
• Total: £5,000

The 10p rise on the first 10,000 miles makes up to £1,000 difference a year.

Employee paid less than the approved rate

You drive 6,000 business miles in your own car in 2026 to 2027. Your employer pays 30p a mile.

• Approved amount: 6,000 x 55p = £3,300
• Your employer paid: 6,000 x 30p = £1,800
• Shortfall: £1,500

That £1,500 is your mileage allowance relief. It is a deduction from your taxable pay, not a cash refund of the full amount, so the tax you save depends on the rate of tax you pay.

If you're self-employed

Sole traders and partnerships without a company partner can use the rates as simplified expenses: a flat rate per mile in place of the actual costs of buying and running the vehicle, such as fuel, insurance, repairs and servicing.

The flat rate applies to:

• cars (but not ones designed for commercial use, such as black cabs)
• goods vehicles, such as vans
• motorcycles

Bicycles are not on the simplified expenses list.

Some rules to know:

• You cannot use the flat rate for a vehicle you've already claimed capital allowances on, or whose costs you've already included as an expense.
• Once you use the flat rate for a vehicle, you must keep using it for as long as you use that vehicle in your business.
• Parking and other travel, such as train fares, can be claimed on top.
• Limited companies cannot use simplified expenses.

You don't have to use simplified expenses. GOV.UK explains both methods on its self-employed expenses pages.

If you're an employee

For employees, the rates set the approved amount: the most your employer can pay you in mileage allowance in a tax year without it being taxed. It is your business miles multiplied by the rate for your vehicle.

Your employer pays	What happens
Exactly the approved rate	All of it is tax-free, nothing to report
More than the approved rate	The extra is taxable, reported by your employer
Less than the rate, or nothing	You may be able to claim mileage allowance relief on the difference

Employees can't claim actual costs instead. HMRC's manual says mileage allowance relief is the only relief for using your own vehicle, however much it actually costs you. GOV.UK also says you can't claim fuel, electricity, vehicle tax, MOTs or repairs separately.

The 5p passenger rate is for carrying fellow employees on journeys that are also work journeys for them. GOV.UK says there is no relief if your employer pays less than 5p or nothing at all.

GOV.UK says you can claim mileage allowance relief for the current tax year and the four before it. When you claim, it says you must send HMRC copies of your mileage logs, with the reason for each journey and its start and end postcodes. If you fill in a Self Assessment return, you claim through that.

Remember: For 2026 to 2027, cars and vans are 55p a mile for the first 10,000 business miles, then 25p. Motorcycles are 24p and bicycles 20p. Miles driven before 6 April 2026 use the old 45p rate. Commuting to your normal workplace is not business mileage.

What the rate does and doesn't include

The approved rate is meant to cover the whole cost of owning and running the vehicle: fuel or electricity, insurance, servicing, repairs, tax and wear. That is why you can't add those on top.

What it doesn't change is which journeys count. Travel between home and your normal place of work is commuting, and isn't covered. Trips to a temporary workplace can be. If you're unsure whether a journey counts, or which method suits your business, check GOV.UK or ask an accountant about your situation.

A record-keeping tool, not tax advice.