The Approved Mileage Allowance Payment rate has increased for the first time in 15 years.
The rate applied to the first 10,000 business miles travelled by employees per year increases from 45p to 55p from 6th April 2026.
The same increased rate also applies to the simplified expenses regime available for the self-employed.
Key Points from 6th April 2026
- The Approved Mileage Allowance Payment (AMAP) rate for employees using their own cars or vans for business travel increased to 55p per mile, from 45p per mile, for the first 10,000 business miles travelled per year.
- Business mileage after 10,000 miles remains at 25p per mile.
- There has been no change to the rates for motorcycles or bicycles. These will remain at 24p and 20p respectively.
- HMRC have applied same increase to the simplified expenses rules for the self employed.
Why now ?
The government say that the increase was made “in recognition of the pressures facing drivers as a result of the effects of the Iran war”.
Our opinion
Whilst any increase is welcome, an increase of just 10p after 15 years does not properly reflect rising costs since 2011.
If mileage rates had increased in line with inflation throughout the 15 years period, they would be at 68p today, rather than 55p.
It is also disappointing that the 25p rate for mileage over 10,000 miles stays the same, because employees who drive the longest distances for work are under the most financial pressure from rising motoring costs.
