A welcome announcement by the Chancellor that the amount taxpayers using their own cars for business mileage can either be reimbursed tax free by employers or tax relief claimed, with the rate increasing from 45p per mile to 55p per mile, for the first 10,000 miles.
What this means is that if you have to drive as part of your work, for example if you are self-employed marketer going to see a client or a care worker driving from house to house, then your employer (you, if self-employed), can cover your costs/claim per mile with what’s called the “Approved Mileage Allowance Payment.” The driver pays neither tax or national insurance on this, so it’s always been a welcome relief, but this week’s announcement is the first time it’s been changed since 2011, so it’s long overdue.
Even better, it’s backdated to April 2026, so it will apply to all returns submitted in the current fiscal year.
Callum McKinnon, M&S Accountancy and Taxation
