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HMRC Keeps 45p-Per-Mile Rate For 2026–27 Tax Year

The unchanged rates increase the net savings for drivers of electric cars.

Overview

  • HMRC, which confirmed Monday the 2026–27 rates stay the same, kept 45p per mile for the first 10,000 business miles and 25p after that for cars and vans.
  • Electric-car drivers can claim the same rates, with the RAC noting charging can cost about 5p per mile, which makes the allowance more valuable.
  • Only work trips in your own vehicle qualify, not ordinary commuting, and claims require a log with dates, reasons, and start and end postcodes.
  • You can claim for the current tax year and the previous four years, and if your employer reimburses only part of your mileage you can claim relief on the difference.
  • Other approved rates remain 24p per mile for motorcycles and 20p for bicycles, and employers can add 5p per mile for each passenger on business journeys.