Mileage Allowance Increase

Posted on 25th June 2026

On 21st May 2026, Rachel Reeves announced that the mileage allowance will be increased from 45p to 55p per mile, for the first 10,000 miles in the tax year. For any mileage over 10,000 miles the rate will still be 25p per mile.

Although this has only just been announced, it can be backdated to 6th April 2026, meaning this is in effect for all of 2026/27.

This is quite a significant allowance change and could be worth up to £1,000 as a tax deductible expense, if fully used. The electric car mileage rate remains at 7p for home charged mileage and 15p for public charged mileage.

Get in contact – Call the team at Holmes and Company on 01525 851101 or contact us here

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