INCREASE TO AMAPS AND SELF-EMPLOYED MILEAGE RATES FROM APRIL 2026

ASESA Solutions Ltd - INCREASE TO AMAPS AND SELF-EMPLOYED MILEAGE RATES FROM APRIL 2026

Increases to the Approved Mileage Allowance Payments (AMAPs), Mileage Allowance Relief (MAR), and self-employed mileage rates have been announced for the 2026–27 tax year.

These updated rates will be backdated to 6 April 2026 and mark the first increase in 15 years — a welcome change for both employers and employees.

The revised mileage rates are as follows:

• 55p per mile for the first 10,000 business miles

• 25p per mile for any business mileage over 10,000 miles 

What this means for employers

Employers may wish to review and update business mileage reimbursements already processed from the start of the 2026–27 tax year, to ensure they align with the newly announced rates.

Where employees have been reimbursed below the new approved mileage rates, they may still be eligible to claim tax relief on the difference through HMRC.

HMRC is currently updating the relevant job expenses claim forms to reflect the revised mileage rates. Further guidance and updated claim forms are expected to be released shortly.

What this means for Self-Employed Individuals

Self-employed individuals using simplified mileage expenses will also be able to apply the new rates in their 2026–27 Self Assessment tax returns.

Filing deadlines for the 2026–27 tax return remain:

• 31 October 2027 — for paper tax returns

• 31 January 2028 — for online submissions

Conclusion

These changes provide increased support for employees and self-employed individuals facing rising travel costs and represent a significant update to mileage relief after many years without change.

Employers should consider reviewing current payroll and expense processes to ensure reimbursements are accurate and compliant with the updated HMRC guidance.