After remaining unchanged for over a decade, HMRC has increased the Approved Mileage Allowance Payment for cars and vans.

The current approved rates are:
– 55p per mile for the first 10,000 business miles (previously 45p)
– 25p per mile for each business mile over 10,000 (unchanged)

What does this mean?

If you use your own car or van for business journeys, you may now be able to claim 55p per mile for the first 10,000 business miles. Employers can also reimburse employees at these approved rates without creating a tax liability.

If you are not sure how these updated rates affect your business, payroll, or mileage claims, get in touch with us – we’re happy to help. 📞