For the first time since 2011 the approved mileage rates increase which have been long awaited and announced in the Commons by Chancellor Rachel Reeves today 21 May 2026. The major change was to the 45p/mile rate which has increased to 55p from the beginning of the tax year. So actions to be taken are as follows
- Update any spreadsheet forms to the new rate immediately
- Any claims made covering mileage since 6 April can be updated and the shortfall paid
- Software providers such as Freeagent are already being asked to update their software to account for the updated rate
- The rates have already been updated on the gov.uk website
Business mileage can be claimed for
- Mileage in your personally owned vehicle
- For mileage for business purposes from your workplace, or home if that is your workplace
- It does not cover any commuting costs to a permanent or regular workplace
- However if there is a brief stop at the workplace on the way to a business appointment the whole mileage can be claimed
You should keep a detailed record of the business mileage covered should HMRC ever check the claims made. You should seek professional advice if you have any questions regarding these contents. If you would like advice in this or other areas feel free to call. Alastair Wood, AW Accounting, Shrewsbury, Shropshire – Accountants who “speak your language”