Latest News About 55P A Mile

Here’s the latest on the 55p per mile news as of 2026.

• What it is: The mileage rate for approved mileage allowance payments (AMAPs) has risen to 55p per mile for business journeys in personal vehicles. This applies to the first 10,000 miles driven in a tax year, with any amount above that typically at the lower rate (often 25p per mile for cars). This change marks the first increase since the rate was fixed at 45p for many years. [Source: coverage of the AMAPs rate increase and government context, May 2026 reports][1][2][4]

• When it took effect: The rate increase is retroactively backdated to April 2026. Practically, that means eligible employees and self-employed individuals can claim or be reimbursed at 55p per mile for qualifying business miles starting from April 2026 onward.[2][4][1]

• Who benefits: Workers who use their own vehicles for work—such as care workers, tradespeople, and field-based staff—stand to gain the most, especially if their employer reimburses at or near the new rate. The 10p rise covers the first 10,000 miles per tax year; beyond that, the rate typically reverts to the previous lower figure.[4][2]

• Additional context and commentary: The change is part of wider cost-of-living measures announced around the same time, with discussions noting the retroactive application and implications for tax relief and National Insurance contributions. Some reports emphasize the potential tax relief angle if an employer does not fully cover the new rate.[2][4]

• Related media coverage: Several outlets highlighted the policy ahead of and after the announcement, including summaries of the change and practical examples of how much a driver might gain annually at the new rate for typical mileages (e.g., 5,000–10,000 miles).[4][2]

If you want, I can tailor this to your situation (e.g., estimate your possible tax relief or employer reimbursement impact based on your annual business mileage).