Soundbite: Changes to mileage rates for employees

On 21 May 2026, HMRC updated its Employment Income Manual to reflect an increase in the statutory mileage allowance for cars and vans for the 2026-27 tax year onwards.

The revised rates, backdated to 6 April 2026, are:

• 55p a mile for the first 10,000 miles (previously 45p per mile)
• 25p a mile for additional miles (unchanged)

Employers should consider increasing the amount that they reimburse employees to reflect the revised rates, including whether to uplift payments already made for April and May 2026 to reflect the backdated increase.

If you have any questions about how this will affect your business, please get in touch with a member of the team.