HMRC mileage rate rises from 45p to 55p a mile

The approved mileage rate for cars and vans has increased from 45p to 55p per mile for the first 10,000 business miles in a tax year. The rate above 10,000 miles is unchanged at 25p. The increase applies from 6 April 2026 and is backdated to the start of the 2026/27 tax year.

It is the first change to the rate since 2011, and it applies to the self-employed simplified mileage rates as well as to Approved Mileage Allowance Payments for employees - so it affects delivery drivers claiming mileage on a Self Assessment return directly.

What it means for a delivery driver

At 55p, 10,000 business miles is worth £5,500 of deduction rather than £4,500 - a £1,000 increase in allowance for a driver who reaches the threshold. For a basic-rate taxpayer paying 6% Class 4 National Insurance on top, that is roughly £260 less tax on the same driving.

It also widens the gap between the mileage method and actual costs, making mileage the better choice for more drivers than before. If you chose actual costs on the basis of the old rate, it is worth rerunning the comparison - though note you cannot switch methods for a vehicle you have already claimed mileage on.

What JoltMile did

JoltMile's default car and van rate is 55p, and rates are stored per shift as a snapshot at the time you logged it, so historical shifts keep the rate that applied when they happened. If you set your own rates in Settings, check them against the current HMRC figures.