Mileage rate increased to 55p per mile

You may have seen the recent announcement that the HMRC mileage rate has increased by 10p to 55p per mile (for the first 10,000 miles), effective from 6th April 2026. While this is a straightforward change there is some aspects as a business owner you may want to consider.

• Expense policy
• Will you uplift your mileage rate in line with HMRC?
• If not, employees can claim tax relief on the shortfall but this may lead to more queries/admin (and potentially negative moral).
• Do you have any formalised policy that needs updating and sharing? If not, you may want to consider issuing some internal communication.
• Systems and processes
• Do you need to update your expense management system to manage this increase?
• The change is backdated to April, so you need to consider how you account for back dated claims (if as a business you are allowing them).
• As a reminder HMRC requires all Approved Mileage Allowance Payments (AMAP) to have detailed supporting records.
• Client recharges
• If you recharge your clients for any mileage costs, you may want to organise some communication before you increase your recharge.
• Budget
• Do you need to consider increasing your travel budget? For most businesses this won’t be material enough, for others a 22% increase is worth considering.

Lastly as a business owner, it is also a good reminder to look at claiming mileage you can (as long as it’s for business!) through the accounts.

Please speak with your usual contact if you need assistance.