Clear answer
The 55p mileage rate is HMRC’s approved (AMAP) rate for the first 10,000 business miles in a car or van in tax year 2026/27. Miles after that are still 25p. It replaced the long-standing 45p first-band rate from 6 April 2026.
Who uses the 55p figure?
- Employers — can reimburse employees tax-free up to the approved amount for business miles in the employee’s own vehicle.
- Employees — if paid less than 55p/25p, may claim Mileage Allowance Relief on the shortfall.
- Self-employed — simplified expenses for cars/goods vehicles use the same 55p / 25p flat rates for 2026/27 (see sole trader mileage).
Worked example
8,000 business miles in your own car, employer pays 40p:
- Approved at 55p: 8,000 × 55p = £4,400
- Employer paid: 8,000 × 40p = £3,200
- Potential MAR shortfall: £1,200
Same 8,000 miles under the old 45p band would have been an approved amount of £3,600 — so the 55p change matters for 2026/27 claims.
Calculate yours
Free MileClaim UK calculator (55p rates)
£12 pack on Payhip if you want printable logs year-round.
GOV.UK sources
Free MTD deadline calendar
Import every MTD for Income Tax quarterly update and tax return date for 2026/27 and 2027/28 into your calendar in one go.
Free. Unofficial. Not tax advice.