ATT Budget Representation - HMRC approved mileage rates

The ATT has submitted a Budget Representation on HMRC approved mileage rates.

Whilst we welcomed the announcement in May 2026 that the approved mileage rate for the first 10,000 miles of business travel in a tax year would increase for the first time in 14 years, the increase did not reflect the additional costs of running a car since the rate was last reviewed, and we remain concerned that other approved mileage rates were unchanged.

Our recommendation is that all mileage rates (including those for cars, motorbikes and bicycles) should be increased to better reflect the current costs of running and maintaining a personal vehicle, in a similar way that HMRC regularly revises the advisory fuel rates for employees using a company car. 

In respect of business mileage in a car or van, we felt that a single AMAP rate of at least 60p per mile would better capture the additional costs incurred by employees, uplifting the previous 45p rate for inflation, without penalising motorists who carry out the highest levels of mileage.

We also requested that these rates should then be reviewed and updated on an annual basis.