June 2026: HMRC update to mileage rates

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Changes have been made to reflect the latest HMRC legislation to ensure your mileage calculations stay accurate and compliant.

What's changed?

  • HMRC has increased the Approved Mileage Allowance Payment (AMAP) rate for cars and vans for the 2026/27 tax year. This is the first increase since 2011.

  • Any employees being reimbursed for business mileage using their own vehicles are affected. The new rate applies to all mileage from 6 April 2026 and has been backdated to the start of the 2026/27 tax year.

  • We've updated Cintra iQ to reflect the new HMRC approved mileage rates. All mileage calculations going forward will automatically apply the correct AMAP rates.

New Rates at a Glance:

  • Cars & vans: 55p per mile (first 10,000 business miles) - up from 45p.

  • All other rates remain unchanged.

Additional Notes:

  • Backdated to 6 April 2026: If you have already processed mileage payments for April or May 2026 at the old 45p rate, you should consider whether a backdated top-up is required for affected employees.

  • Employees reimbursed below the approved HMRC rate may be able to claim Mileage Allowance Relief (MAR) directly from HMRC on the difference.