HMRC Mileage Rates Increase to 55p per Mile
From April 6th 2026
HMRC has increased the approved mileage rate for cars and vans from 45p to 55p per mile for the first 10,000 business miles in the tax year.
The rate for business mileage over 10,000 miles remains at 25p per mile.
The new rates apply retrospectively from 6 April 2026.
2026/27 mileage rates:
- 🚗 Cars and vans – 55p per mile for the first 10,000 business miles
- 🚗 Cars and vans – 25p per mile after 10,000 miles
- 🏍️ Motorcycles – 24p per mile
- 🚲 Bicycles – 20p per mile
For employees using their own vehicle for business journeys, these are the HMRC Approved Mileage Allowance Payment (AMAP) rates.
For self-employed individuals using HMRC's simplified mileage method, the car and van rate is also 55p for the first 10,000 business miles, then 25p thereafter.
If you have been using the old 45p rate, it may be worth checking your mileage claims from 6 April 2026 onwards.
Register for Self Assessment by 5 October 2024
The deadline for registering for Self Assessment for the 2023 to 2024 tax year is 5 October 2024.
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April 2026: MTD for ITSA Becomes Mandatory for Certain Individuals
What You'll Need to Do Starting April 2026:
In April 2026, Making Tax Digital for Income Tax Self-Assessment (MTD for ITSA) will become mandatory for self-employed individuals and landlords whose annual business or property income exceeds £50,000.
Key Details:
Who is Affected?
- Self-employed individuals and landlords with annual gross income from business or property over £50,000.
What Changes in April 2026?
- Digital Record Keeping: Affected taxpayers must keep digital records of their income and expenses using HMRC-approved software.
- Quarterly Updates: You will need to submit quarterly updates of your income and expenses to HMRC through this software. These updates replace the annual tax return process.
- End-of-Year Submission: At the end of the tax year, you’ll need to submit a final declaration to confirm your total income and calculate the exact tax owed.
Quarterly Reporting Deadlines:
- Reports will be submitted every three months, typically within a month after the quarter ends.
This is the first phase of MTD for ITSA, with further extensions planned for those earning over £30,000 in April 2027.
Tagline
MTD Update (HMRC):
Making Tax Digital for Income Tax starts 6 April 2026 for incomes over £50,000, expanding to £30,000 from April 2027. Now is the time to get prepared.