Mileage rates: the 2026 increase
| Vehicle | From 6 April 2026 | Before 6 April 2026 |
|---|---|---|
| Cars and vans, first 10,000 miles | 55p | 45p |
| Cars and vans, after 10,000 miles | 25p | 25p |
| Motorcycles | 24p | 24p |
| Bicycles (employees only) | 20p | 20p |
The car and van rate for the first 10,000 miles rose from 45p to 55p on 6 April 2026, the first rise in many years. Check that any spreadsheet or app you use has been updated.
How to use this calculator
- Choose the tax year and vehicle. Use 2025 to 2026 for the tax return due by 31 January 2027.
- Enter your business miles for the year. Normal commuting doesn't count.
- Optionally enter your tax and NI rate to see roughly what the claim saves you.
How it's calculated
Worked example
Lucy is a self-employed electrician who drove 12,000 business miles in her van in 2026 to 2027. She pays 20% Income Tax and 6% Class 4 NI on her top slice of profit.
Lucy can claim £6,000, saving about £1,560. At the old 45p rate, the same miles would have given £5,000.
What this calculator doesn't cover
- Actual vehicle costs and capital allowances. If you've already claimed capital allowances for a vehicle, you can't switch it to flat rates.
- Passenger payments and fuel-only rates for company cars.
Frequently asked questions
Who can use these rates?
Self-employed people using simplified expenses for cars, vans and motorcycles, and employers paying employees for business journeys in their own vehicles. Bicycles only have an approved rate for employees.
Can I also claim parking and train fares?
Yes. Parking, tolls and other travel costs, such as train fares, can be claimed on top of the mileage rate.
Can I change back to actual costs later?
No. Once you use the flat rate for a vehicle, you must keep using it for as long as you use that vehicle for your business.
Sources: simplified expenses: vehicles, business travel mileage rates.