HMRC mileage rate 2026: is 55p enough?
The 2026/27 approved mileage rates (55p, then 25p), a worked example and how to compare them with what your car really costs. Plus France and Spain.
From 6 April 2026, the tax-free rate for using your own car for work rose from 45p to 55p a mile, the first rise since 2011. It is meant to cover what a car costs to run. Does it cover what yours costs? Here are the rates, what they include, and how to compare them with your car's real cost per mile.
The approved mileage rates for 2026/27
According to GOV.UK (updated 21 May 2026), the approved mileage allowance payments (AMAP) are:
| Vehicle | First 10,000 business miles | Over 10,000 miles |
|---|---|---|
| Car or van, 2026/27 | 55p per mile | 25p per mile |
| Car or van, 2011/12 to 2025/26 | 45p per mile | 25p per mile |
| Motorcycle | 24p per mile | 24p per mile |
| Bicycle | 20p per mile | 20p per mile |
Your employer can pay up to these rates tax-free. If they pay less, you can claim tax relief on the difference, called Mileage Allowance Relief. Commuting between home and your usual workplace does not count as business travel.
Worked example: 12,000 business miles a year
10,000 × 55p + 2,000 × 25p = £5,500 + £500 = £6,000, or 50p per mile on average.
The average falls as mileage rises: 55p per mile up to 10,000 miles, 45p at 15,000 miles (£6,750), 40p at 20,000 miles (£8,000). That makes sense, because part of a car's cost (insurance, depreciation with age) doesn't depend on the miles.
Comparing with your car's real cost
To know whether the allowance covers you, work out your own cost per mile: all your car expenses for the year ÷ miles driven. Add depreciation, which the rate is meant to cover: (purchase price − estimated resale value) ÷ years of ownership ÷ miles per year. Our article on the real cost of a car per kilometre explains the method (divide a cost per km by 0.621 to get a cost per mile), and the car cost calculator gives a first estimate.
- Real cost above 55p: a recent, expensive car on low mileage can cost more than the allowance; the difference comes out of your pocket.
- Real cost below: an older, economical car is often cheaper to run than the rate.
In France and Spain
France: the tax office's barème kilométrique for the 2026 return (2025 income) was not raised. For a 5 CV car driven 12,000 km for work, it gives (12,000 × 0.357) + 1,395 = €5,679, or about €0.47 per km (service-public.gouv.fr, in French). It covers depreciation, repairs and maintenance, tyres, fuel and insurance; tolls and parking are added on top (impots.gouv.fr).
Spain: an employer's allowance for using your own car is free of income tax up to €0.26 per km, plus documented tolls and parking (Orden HFP/792/2023, in force since 17 July 2023; it was €0.19 before). Anything above is taxable.
What Staticar measures, and what it doesn't
The Staticar app works out your cost per kilometre over the last 12 months: fuel, maintenance, insurance, tolls, parking, registration and other expenses, divided by the distance from your odometer readings. It also keeps a log of your trips (start, destination, date and time, distance, notes).
It doesn't include depreciation, doesn't calculate tax allowances and doesn't produce documents for HMRC: it gives you your real figures to compare. Your data stays on your phone, with no account and no Internet access.
Sources
- GOV.UK, Travel – mileage and fuel rates and allowances, updated 21 May 2026, and Business travel and mileage: rules for tax.
- Service-public.gouv.fr, 2026 mileage scales (in French), 9 April 2026; impots.gouv.fr, transport costs (in French).
- BOE, Orden HFP/792/2023 (in Spanish).