In a surprise announcement back in May 2026, ex-chancellor Rachel Reeves announced an increase to the Approved Mileage Allowance Payments (MAPs) for this tax year, 2026-27
The MAPs have:
- increased to 55p per mile for the first 10,000 miles; and
- 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 above approved MAP rates, you may want to increase the amount you reimburse them for business mileage, in line with the new approved MAP rates.
From April 2026 to 21 May 2026 when the change was announced, if you reimbursed your employees mileage above the old 45p rates and deducted Income Tax and/or Class 1 National Insurance contributions (NIC) on the excess, you can correct the payroll so that overpaid tax and NIC is effectively refunded.
If you are an employee …
Don’t forget that if your employer reimburses your mileage at below the above rates, you can claim tax relief on the difference via your Personal Tax Account.
And, if you are self-employed …
The same rates noted above apply – don’t forget to keep meticulous records of the business mileage you carry out to substantiate your claim.
