Tax-Free Mileage Rates

A 10p per mile increase in tax‑free mileage rates will apply in the 2026/27 tax year, backdated to April 2026. The increase relates to the amount per business mile driven that attracts tax relief and affects both employees and the self-employed. HMRC’s mileage rates guidance has been updated as follows:

Note that only the rate for cars and vans for the first 10,000 miles has increased; other rates are unchanged.

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Temporary Reduced Rate of VAT