Mileage Payment Changes 2026-27
7th September 2026
HMRC has announced changes to the approved mileage allowance payment (MAP), which can be backdated to the start of the 2026-27 tax year.
Rates have:
- Increased to 55p per mile for first 10,000 miles
- Remained at 25p per mile after 10,000 miles
The NI contributions disregard for Relevant Motoring Expenses have also increased to 55p per mile.
If employees have been paid below the approved rate, employers could consider increasing the amount paid to reimburse employees for business miles.
If employees have been paid above the old rates, income tax or class 1 NI may have been deducted which is no longer due. Employers will need to examine whether employees have overpaid tax and NI in the previous months of the 2026-27 and, if so, arrange for this to be refunded.
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