Mileage Allowance Payments (MAPs) are what an employer can pay employees for using their own vehicle for business journeys.
They’re allowed to pay employees a certain amount of MAPs each year without having to report them to HMRC. This is called an ‘approved amount’.
As part of the Chancellor Rachel Reeves update to the House of Commons on the Government’s economic response to the war in Iran on Thursday 21st May 2026, and the actions being taken to support families and businesses with the Cost of Living.
… having heard from my honourable friends the members for Oldham West, Chadderton and Royton and the trade union Unison, I can today announce a 10p per mile increase in tax free mileage rates, backdated to April 2026; benefiting those who need to drive for work, from care workers to plumbers.
Tax: rates per business mile
- First 10,000 miles 55p per mile from April 2026
- Over 10,000 miles 25p (no change)
For mileage before April 2026 it was 45p per mile
For mileage before April 2011 it was 40p per mile
Anything below the new ‘approved amount’
Employers will not have to report to HMRC or pay tax, but:
- your employee will be able to get tax relief (called Mileage Allowance Relief, or MAR) on the unused balance of the approved amount
- Employers can make separate optional reports to HMRC of any such unused balances under a scheme called the Mileage Allowance Relief Optional Reporting Scheme (MARORS) – contact HMRC to join the scheme
PAYadvice.UK 21/5/2027
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