Approved Mileage Allowance Payments (AMAPs), Mileage Allowance Relief (MAR) and self-employed mileage

26 May 2026

The government has announced increases to AMAPs, MAR and self-employed mileage rates, which will be backdated to 6 April 2026. This is the first uprating of the mileage rates in 15 years. The new rates are:

• an increase from 45p to 55 per mile for the first 10,000 miles
• over that, the rate will remain at 25p per mile for mile 10,001 and over

All other mileage rates will remain the same.

Employers are able to increase the amount they reimburse their employees for business mileage, in line with the new rates.The change is retrospective to 6 April 2026.

Employers who reimbursed their employees above the old rates, where tax and NIC was deducted, may need to re-run their payroll for April and May to account for the increase to AMAPs.

If an employee is reimbursed less than the new AMAPs rate, they can claim tax relief for their job expenses. HMRC's job expenses tax relief claim forms are currently being updated with the new mileage rates.

Self-employed customers will be able to use the new rates in their 2026/27 return.

In a statement, Dan Tomilinson, The Exchequer Secretary to the Treasury, said 'This will represent the largest ever increase to these mileage rates, benefitting around 2 million employees and 1 million self-employed individuals, saving over £120 a year for a worker doing 6,000 business miles.'

Sources:
Written statements - Written questions, answers and statements - UK Parliament
https://www.gov.uk/government/publications/agent-update-issue-143/issue-143-of-agent-update#crisis