If you use your own car for work, this is the kind of update you actually want to hear. Mileage rates are increasing from April 2026 for the first time in around 15 years, which means many workers could reclaim more mileage tax relief than before. So if your job involves driving around all day while your fuel gauge drops faster than your patience, you may be due a bigger refund. And considering the cost of fuel, tyres, servicing and literally everything else these days… it is not exactly surprising people are paying attention.
What does the mileage rate increase actually mean?
In simple terms, higher mileage rates can increase the amount of tax relief available on qualifying business miles. That means your mileage claim could be worth more than it was previously. Which is great news for anyone regularly using their own vehicle for work. Especially if your car currently spends more time at petrol stations than parked outside your house.
What could your refund look like?
Here are some example figures based on 10,000 business miles. 20% taxpayer Salary: £20,000 to £50,000 Previous refund: £900 New refund: £1,100 That is up to £200 extra per year.
40% taxpayer
Salary: £50,000 to £100,000 Previous refund: £1,800 New refund: £2,200 That is up to £400 extra per year. Not bad for journeys you were already making anyway.
Who can claim mileage tax relief?
A lot more people qualify than you might think. Mileage tax relief is commonly claimed by:
- Healthcare workers
- Construction workers
- Engineers
- Sales reps
- Carers and support workers
- Delivery drivers
- Cleaners
- Field-based employees
Basically, if your job involves travelling for work in your own vehicle and you are covering the costs yourself, it is worth checking. Even smaller journeys soon add up. A few miles here, a few miles there, and suddenly your annual mileage looks terrifying.
What counts as business mileage?
Qualifying business mileage usually includes journeys like:
- Travelling between job sites
- Visiting clients or patients
- Driving to temporary workplaces
- Travelling between appointments during the working day
Your normal commute to your regular workplace does not usually count. As unfair as that feels when you are sitting in traffic at 7:30 in the morning.
Why people often miss out
Loads of workers never claim mileage tax relief simply because they assume:
- The process sounds complicated
- The refund will not be worth much
- Their employer already covers everything
- They do not drive “far enough”
But business mileage builds up quickly over a year, especially in jobs where travelling becomes part of the daily routine. Many people are surprised when they realise how much they could actually reclaim. And now that mileage rates are increasing, those refunds could become even more worthwhile.
Your car has probably earned it
Let’s be honest. If you use your own vehicle for work, your car goes through a lot. Endless fuel stops. Mystery dashboard lights. Potholes that feel personal. The annual MOT anxiety. So seeing larger mileage tax refunds from 2026 onwards will definitely be welcome news for plenty of workers across the UK. If you already claim mileage tax relief, your future claims could increase. If you have never checked before, now is probably a good time. Those work journeys could be worth more than you think. Check what you could claim with Express Tax Claims.
Frequently Asked Questions
- Why are mileage rates changing after so many years?Mileage rates are periodically reviewed to reflect changes in fuel prices, vehicle running costs, and wider economic conditions. Any updates are designed to better represent the cost of using a personal vehicle for work-related travel.
- When could the new mileage rates apply?Updated mileage rates are expected to apply from April 2026, although official guidance and implementation dates may vary depending on HMRC announcements and employer policies.
- Will the mileage rate increase affect mileage tax relief claims?If approved mileage rates increase, the amount of tax relief available on qualifying business mileage could also increase for eligible workers using their own vehicle for work.
- Do employers have to use the new HMRC mileage rates?Employers are not required to reimburse mileage at the HMRC approved rate. However, if an employer pays less than the approved amount, employees may be able to claim tax relief on the difference, depending on their circumstances.
- Can I still claim mileage tax relief if my employer pays some mileage expenses?In some cases, yes. If your employer reimburses mileage below the HMRC approved rate, you may still be able to claim tax relief on the remaining difference.
- What journeys usually qualify for mileage tax relief?Qualifying business mileage can include travelling between temporary workplaces, visiting clients or patients, travelling between job sites, or driving between appointments during the working day. Ordinary commuting to a permanent workplace does not usually qualify.
- Do electric and hybrid vehicles qualify for mileage claims?Yes. Employees using their own electric, hybrid, petrol, or diesel vehicle for qualifying business journeys may still be eligible for mileage claims under HMRC approved mileage allowance rules.
- Do I need to keep records of my business mileage?Yes. Keeping accurate mileage records is important in case evidence is needed to support a claim. Records normally include journey dates, destinations, purpose of travel, and the number of business miles travelled.
- Can I claim mileage tax relief for previous tax years?In many cases, workers can claim mileage tax relief for previous eligible tax years, subject to HMRC time limits and individual circumstances.
- How do I calculate business mileage for a claim?Business mileage is usually calculated by recording the number of qualifying work-related miles travelled in your personal vehicle during the tax year. The applicable HMRC approved mileage rate is then used to work out potential relief or reimbursement values.
