21 May 2026
Increases to AMAPs, MAR and self-employed mileage has been announced by Chancellor Rachel Reeves. Mileage will be backdated to 6 April 2026 for the 2026-27 tax year. This is great news, as the CIPP has previously advocated for change in this area, with these rates previously remaining unchanged in 15 years.
The rate changes are as follows:
- increase to 55p per mile for the first 10,000 miles
- remain at 25p per mile for mile 10,001 and over.
Employers may want to increase the amount they reimbursed for business mileage in previous pay runs, for employees paid from the start of the tax year, in line with the new rates.
If an employee is reimbursed less than the new AMAPs rate, they can follow advice to claim tax relief for their job expenses.
The job expenses tax relief claim forms are currently being updated with the new mileage rates. Keep an eye out for future Agent Updates as new forms go live where employees can submit claims for mileage relief.
Self-employed customers will be able to use the new rates in their 2026 to 2027 tax return, due on:
- 31 October 2027 if completed by post
- 31 January 2028 if filed online
The Business Income Manual expenditure on motor vehicles guidance will be updated on Thursday 21 May 2026.
Information provided in this news article may be subject to change. Please make note of the date of publication to ensure that you are viewing up to date information.
