As announced by the Chancellor, the Approved Mileage Allowance Payment (AMAP) rate for employees using their own cars or vans for business travel has jumped from 45p to 55p per mile for the first 10,000 miles. The AMAP rate increases for all drivers using their own vehicle for business mileage.
Best of all, it is backdated to 6 April 2026, meaning it applies to the entire 2026/27 tax year. So, if drivers have been clocking up work miles recently, those miles are already worth more.
(Note: The rate for miles over 10,000 remains at 25p, and standard commuting to your regular workplace still does not count).
We support businesses with mileage reimbursement in payroll as part of TMC’s wider mileage capture and audit solution.
We also offer Cash iQ, a service that provides employers and their employees the opportunity to enjoy the maximum national insurance contribution (NIC) exempt amounts allowed where 1. employees use their own vehicle for business mileage and 2. if you reimburse at a rate less than the AMAP, now 55p/25p.
With this increase, Cash iQ can now attract further savings!
Want to slash your mileage tax and NI costs? We’re helping businesses do just that.
