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HMRC Mileage Allowance Increased to 55p Per Mile: Tax Savings for UK Workers & Sole Traders

HMRC Mileage Allowance Increase to 55p Per Mile: What It Means for UK Employees, Self-Employed Workers and Universal Credit Claimants

Published: June 2026 Category: UK Tax Advice | Self Assessment | Business Expenses The UK government has introduced one of the most significant mileage allowance changes in over a decade. HM Revenue & Customs (HMRC) has increased the Approved Mileage Allowance Payments (AMAP) rate from 45p to 55p per mile for the first 10,000 business miles travelled in a personal car or van. For employees, sole traders, taxi drivers, couriers, delivery drivers and self-employed professionals

TaxNex

Jun 194 min read