New Approved Business Mileage Rate

The HMRC approved mileage rate increased to 55 pence per mile from 6 April 2026.  It was previously 45 pence per mile, and had remained unchanged for 15 years.  The new rate can be used by companies to reimburse employees for business travel using a personal vehicle.  It covers all running costs including petrol, insurance, road tax and repairs.   When used there can be no other claim for vehicle costs other than parking.