After almost 15 years remaining unchanged, the approved mileage allowance payment rate for cars and vans has increased from 45p to 55p per mile for the first 10,000 business miles travelled.
The rate for business mileage above 10,000 miles will remain at 25p per mile, with no changes announced for motorcycle or bicycle mileage rates.
The new rate will apply from 6 April 2026 and may impact employees and businesses claiming mileage relief or reimbursing business travel expenses.
Further details can be found at HMRC guidance on mileage rates and allowances.