Passenger Mileage and Other Business Travel and Work Related Expenses
Published / Last Updated on 05/06/2026
Fully Updated for 2026/27 (with HMRC‑verified facts)
2026/27 HMRC Mileage Rates (Cars & Vans)
| Mileage band | HMRC rate |
|---|---|
| First 10,000 business miles | 55p per mile |
| Over 10,000 miles | 25p per mile |
| Passenger supplement | +5p per mile per passenger |
This increase from 45p → 55p applies from 6 April 2026 and can be backdated to 06 April 2026.
Passenger Supplement (Often Forgotten!)
HMRC allows 5p per mile per business passenger, but only when:
-
The passengers are employees
-
They are travelling on business journeys (not commuting)
-
The payment is specifically for carrying passengers
Total Allowance (First 10,000 Miles)
| Passengers | Extra | Total per mile |
| 0 | – | 55p |
| 1 | +5p | 60p |
| 2 | +10p | 65p |
| 3 | +15p | 70p |
Example: Underpaid Mileage by Employer
Employer reimburses: 30p per mile
You have 1 business passenger → HMRC rate = 60p per mile
You can claim the difference (30p per mile) on your tax return.
This aligns with HMRC rules: if your employer pays less than the approved rate, you can claim Mileage Allowance Relief on the shortfall.
Other Approved Mileage Rates (2026/27)
| Vehicle | Rate |
|---|---|
| Motorcycles | 24p per mile |
| Bicycles | 20p per mile |
Other Work‑Related Travel & Expense Relief
You can also claim tax relief for:
- Public transport
- Hotels (overnight stays)
- Food & drink while travelling
- Congestion charges & tolls
- Parking fees
- Business phone calls, printing, stationery
These fall under general allowable business expenses.
Other Allowances Employees Commonly Claim
Work‑from‑home
- £6 per week flat rate, or
- Actual costs with evidence
Uniforms, Tools & Equipment
- Only if required for your job
- Must be on HMRC’s approved list of professional bodies for membership fee claims
Professional Fees
- Annual subscriptions to HMRC‑approved bodies
- No relief for life memberships or non‑approved bodies
How Far Back Can You Claim?
You can claim for:
• The current tax year
• Plus the previous 4 tax years
Summary (2026/27)
- 55p per mile for first 10,000 miles
- +5p per mile per passenger (employees only)
- Claim the shortfall if employer pays less
- Motorcycles 24p, bicycles 20p
- Applies from 6 April 2026
- Back‑claim up to 4 years
