HMRC Approved Mileage Rates Have Increased

HMRC approved mileage rates for work-related journeys (excluding home-to-work travel) have increased. The change was announced on 21 May 2026 but has been backdated to the beginning of the tax year.

It is not a legal requirement for employers to pay the approved rate — this is the rate at which HMRC does not class the payment as a benefit, so no tax or NI is payable. If an employer pays less than the approved rate, an employee can claim tax back from HMRC on the difference. If an employer pays more, the amount over the approved rate may be liable to tax/NI.

Full rates: Travel — mileage and fuel rates and allowances (GOV.UK).