How to Claim the New 55p HMRC Mileage Rate Without the Stress
If you’ve been running a small business or working as a tradesperson for a while, you’ll know that every penny counts. For years, the HMRC mileage rate has been stuck at 45p per mile: a figure that felt increasingly out of touch with the reality of rising fuel prices and van maintenance costs.
But there is good news for the 2026/27 tax year. HMRC has finally increased the Approved Mileage Allowance Payment (AMAP) rate to 55p per mile.
That extra 10p might not sound like a lot on a single trip to the wholesaler, but for a fleet of three vans doing 10,000 miles a year each, that’s an extra £3,000 back in the business. The catch? You have to prove every single mile.
In this guide, we’re going to break down exactly how this new rate works, who can claim it, and how you can stop the end-of-month "receipt panic" using smart tech.
The New 2026 HMRC Mileage Rates: The Facts
From 6 April 2026, the rates for using your own vehicle for business travel have officially changed. This is the first significant hike in over a decade, designed to help small businesses cope with the evolving costs of vehicle ownership.
Here is the breakdown of what you can claim tax-free:
- Cars and Vans (First 10,000 business miles): 55p per mile (Up from 45p).
- Cars and Vans (After 10,000 business miles): 25p per mile.
- Motorcycles: 24p per mile (Unchanged).
- Bicycles: 20p per mile (Unchanged).
It’s important to note that this 55p rate is intended to cover everything: fuel, insurance, road tax, servicing, and even the depreciation of your vehicle. Because it covers all these "running costs," you cannot claim for things like new tyres or an oil change separately on your tax return if you are using the mileage allowance.
"The increase to 55p is a welcome relief for the UK's self-employed and small fleet owners. It finally reflects the true cost of keeping a commercial vehicle on the road in 2026." : Industry Insight
Who Qualifies for the 55p Rate?
Not everyone can claim the 55p rate, so it’s vital to check where you fit in before you start doing the math.
- The "Own Vehicle" Rule: You can only claim the 55p AMAP rate if you are using your own personal vehicle for business. This includes vehicles you own outright or are personal leasing.
- Tradespeople & Sole Traders: If you’re a plumber, electrician, or builder using your own van to get to jobs, you’re in.
- Small Business Owners: If you’re a director of a limited company and you use your personal car for business trips, you can pay yourself 55p per mile from the company account.
- Company Cars are Different: If the company provides the vehicle (a "company car"), you cannot claim the 55p rate. Instead, you must use the HMRC Advisory Fuel Rates (AFR), which are much lower and change quarterly based on fuel prices.
The "Stress" of the Manual Logbook
The problem with claiming mileage isn't the math; it's the record-keeping. HMRC is notoriously strict. If you get audited, "I think I drove about 200 miles that week" won't cut it.
To claim your 55p per mile safely, you need to record:
- The date and time of every journey.
- The start and end postcode.
- the purpose of the trip (e.g., "Customer site visit" or "Picking up supplies").
- The total miles driven.
Most people start the year with a notebook in the glovebox. By February, the notebook is under a pile of coffee cups. By March, you’re trying to reconstruct your entire year using Google Maps and your calendar. It’s a recipe for stress, and it usually leads to under-claiming, meaning you’re literally leaving money on the table.
How to Claim the 55p Rate Without the Stress
If you want to ensure you get every penny you’re entitled to without losing your mind, follow this four-step process.
1. Identify "Business" vs. "Private" Miles
Commuting from your home to a permanent place of work is usually considered private travel. However, travelling from your home to a temporary customer site or traveling between two different job sites is business travel. Use a clear system to flag which is which.
2. Deploy Automated Tracking
Stop using paper logs. A simple Plug and Go GPS Tracker can handle this for you. These devices plug into the OBD port of your van (the same port a mechanic uses for diagnostics) and record every single trip automatically.
3. Generate Monthly Reports
At the end of the month, don't sit down with a calculator. With the DrivePro Trip Recording feature, you can export a CSV or PDF report that is already formatted for HMRC.
4. Reconcile and Pay
If you are an employer, you pay your staff the total mileage amount via payroll. If you are a sole trader, you keep these reports as evidence for your Self Assessment tax return. Ensure you store these records for at least six years, as HMRC can ask to see them at any time.
Why DrivePro.io is the Secret Weapon for Tradespeople
We built DrivePro.io specifically for people who have better things to do than fill out spreadsheets. Whether you have one van or a dozen, our platform makes the 55p claim process invisible.
Our 12-month PAYG Pro Bundle gives you the hardware and the software in one go. Here’s how it helps you claim that 55p:
- Automatic Odometer Updates: The system tracks the actual mileage from the vehicle, ensuring your reports are 100% accurate.
- Categorisation: You can mark trips as 'Business' or 'Private' with a single tap in the app.
- No Monthly Subscriptions: We know small businesses hate "death by a thousand subscriptions." Our PAYG model keeps your costs predictable.
- Audit-Proof Evidence: If HMRC ever knocks on your door, you can hand them a digital folder of every trip, complete with GPS-verified start and end points.
Predict your tax savings, identify your most profitable routes, and ensure you never miss a claim again.
Avoid the 10,000 Mile Trap
One final tip: remember that the 55p rate only applies to the first 10,000 miles in a tax year. Once you hit 10,001 miles, the rate drops to 25p.
If you have multiple employees using their own vehicles, it is vital to track their cumulative mileage across the year. If you accidentally pay them 55p for their 11,000th mile, that extra 30p is considered a taxable benefit, and you'll end up with a headache involving National Insurance and P11D forms.
Using a fleet management platform like ours allows you to see the "Total Yearly Mileage" for every driver at a glance, so you can switch the rate the moment they hit the threshold.
Ready to Simplify Your Mileage?
The move to 55p is a huge win for the automotive industry and small businesses across the UK. Don't let the paperwork stop you from claiming what you're owed.
If you’re ready to ditch the manual logbook and start tracking your business miles the easy way, check out our Van Tracking Solutions today. We’re here to help you keep your fleet moving and your tax bill falling!
Claim your 55p. Save your time. Grow your business.