The Chancellor will announce today (28.10.26) that the tax-free mileage rate, that was increased by 10p to 55p per mile from April 2026, will be a permanent rate change. The details are here.
The rate is 55p for the first 10,000 business miles in the tax year; then 25p for each business mile over 10,000 in the tax year (the Chancellor announced on 28th October 2026 that the 25p rate will be raised to 35p from 6th April 2027).
Claim tax relief for your job expenses for Vehicles you use for work:
You may be able to claim tax relief if you use cars, vans, motorcycles or bicycles for work.
This does not include travelling to and from your work, unless it’s a temporary place of work.
How much you can claim depends on whether you’re using:
- a vehicle that you’ve bought or leased with your own money
- a vehicle owned or leased by your employer (a company vehicle)
You can claim for the current tax year and the 4 previous tax years, if you’re eligible.
You can read more details and use the Gov.uk website service to check if you can claim and how to claim the tax relief.