Mileage allowances changed for tax year 2026-27

HMRC have reminded businesses that the Approved Mileage Allowance Payments (MAPs) have been updated for the 2026-27 tax year. Rates have:

• Increased to 55p per mile for the first 10,000 miles.
• Remained at 25p per mile after 10,000 miles.

These changes are backdated to 6 April 2026.

If you reimburse your employees at or below the approved MAP rate, you may want to increase the amount you reimburse your employees for business mileage, in line with the new approved MAP rates.

Reimbursement?

If you paid your employees mileage payments above the old rates, Income Tax and/or Class 1 National Insurance contributions may have been deducted that may no longer be due.

If so, you can correct the payroll for previous months so that overpaid tax and both employers’ and employees’ Class 1 National Insurance contributions can be refunded.

If you need any help in doing this, please feel free to get in touch. We’d be happy to help you!