HMRC increases mileage rate to 55p: key information for businesses and employees

HMRC increases mileage rate to 55p: key information for businesses and employees

HMRC has confirmed an increase to the approved mileage rate for cars and vans for the 2026/27 tax year.

From 6 April 2026, the approved mileage rate for employees using their own car or van for qualifying business journeys increases from 45p to 55p per mile for the first 10,000 business miles in the tax year.

The change has also been backdated to 6 April 2026, which means some mileage claims already made in the 2026/27 tax year may need to be reviewed.
What has changed?

For cars and vans, the approved mileage rate is now:
• 55p per mile for the first 10,000 business miles
• 25p per mile for business mileage above 10,000 miles
The rates for motorcycles and bicycles remain unchanged.

This update applies to qualifying business journeys. It does not apply to normal commuting between home and a usual place of work.

Why the change matters

The previous 45p rate had been in place for many years. During that time, the cost of running a vehicle has increased, including fuel, insurance, servicing, repairs and general maintenance.
The new 55p rate gives employers the option to reimburse staff at a higher tax-free mileage rate, where the journey qualifies under HMRC rules.
It may also be relevant for employees and self-employed individuals who regularly use their own vehicle for business purposes.

What this means for employers

Employers can now reimburse employees up to 55p per mile tax-free for the first 10,000 qualifying business miles when an employee uses their own car or van for work.
Payments made within HMRC’s approved mileage rates are generally not treated as taxable pay and are not subject to National Insurance.
This may be a suitable time for businesses to review their mileage reimbursement policies, payroll processes and expense systems to make sure they reflect the updated HMRC rate.
For example, an employee who drives 5,000 business miles in a tax year could receive up to £500 more compared with the previous 45p rate.
Employers who continue to reimburse at a lower rate should be aware that employees may be able to claim tax relief from HMRC on the difference.

What this means for employees

Employees who use their own car or van for qualifying business journeys should check the mileage rate they are being paid.
If an employer pays less than the approved HMRC rate, the employee may be able to claim Mileage Allowance Relief on the shortfall.
For example, if an employee is paid 35p per mile, there is a 20p per mile difference between the amount paid and the new approved rate of 55p. The employee may be able to claim tax relief on that difference through HMRC’s job expenses process.
Employees should keep clear mileage records, including:

• the date of each journey
• the destination
• the reason for the journey
• the number of business miles travelled

Accurate records are important if mileage claims or tax relief claims are reviewed.

What this means for self-employed individuals

Self-employed individuals and sole traders may also benefit from the increase where they use the simplified mileage method.
For eligible business journeys using a car or goods vehicle, the mileage rate is now 55p per mile for the first 10,000 business miles.
This can be claimed as an allowable business expense when calculating taxable profits for Self Assessment.
For self-employed individuals who travel regularly for work, the increase could help reduce taxable profit and therefore reduce the overall tax bill.

A welcome update

The increase from 45p to 55p is a notable change, particularly for those who rely on their own vehicle for work.
This may include mobile workers, care workers, tradespeople, sales teams, field engineers and business owners who regularly travel between clients, sites or appointments.
The update recognises that work-related travel can place a real cost burden on employees and self-employed individuals.
However, the current confirmed rate applies to the 2026/27 tax year, so businesses and individuals should continue to check HMRC guidance for any future updates.
Key points to remember
• The car and van mileage rate has increased from 45p to 55p per mile
• The new rate applies to the first 10,000 qualifying business miles
• The change applies from 6 April 2026
• The change has been backdated to 6 April 2026
• The rate above 10,000 miles remains 25p per mile
• Normal commuting does not qualify
• Employees may be able to claim tax relief if paid below the approved rate
• Self-employed individuals using simplified mileage may also benefit

Further information
Businesses may wish to review their mileage policies, payroll systems and expense procedures to make sure the updated HMRC rate is reflected correctly.
Employees and self-employed individuals should keep accurate records of business mileage to support any claims made.

Have questions about the HMRC mileage rate update?

Get in touch with Tickdoc today.

The Benefits of Publishing Your Google Mini-Site

Enhanced Visibility:

By incorporating the mini-website into your wider Google Business listing, you’re positioning your business for greater visibility in local search results. Google’s algorithm considers the information provided on both your Google Business listing AND the mini-site, thereby increasing the likelihood of your business appearing in relevant searches.

Don’t believe us?
Here’s what Google has to say on the subject:
‘’… Your Business Profile complements your website by adding more visibility to your current business website on Google Search and Google Maps at no charge…”

Improved User Experience:

The Google free website offers an intuitive and user-friendly experience, catering to the needs of mobile users and those seeking quick information. Visitors can easily access vital details about your business without navigating through multiple pages, fostering a positive impression and potentially leading to higher engagement rates.

Control over Information:

With a Google mini-site, you gain more control over the presentation of your business details within the Google ecosphere. While a Google Business listing offers limited customisation options, the mini-site empowers you to showcase your unique brand identity, services, and products.

Call-to-Action (CTA) Integration:

The mini-site allows you to incorporate compelling calls-to-action, encouraging visitors to take specific actions, such as making a reservation, placing an order or signing up for newsletters. This feature can directly contribute to driving conversions and fostering customer engagement.

Considerations and Best Practice

While the Google mini-site offers numerous advantages, it’s important to approach its implementation thoughtfully. Consider the following best practices:

Consistent Branding:

Ensure that your mini-site aligns with your brand’s visual identity, including colors, logos and fonts. Consistency in branding across all online platforms reinforces your business’s professionalism and trustworthiness. That said, there are only limited ‘themes’ for your page, so be prepared to compromise.

Relevant Content:

Craft compelling and informative content that highlights your unique value proposition. Share success stories, product details and relevant images to captivate your audience and address their needs. If you’re stuck for inspiration, add summaries of recent blog posts or rewrite other social media content.

Regular Updates:

A stagnant mini-site can deter potential customers. Keep your content current by updating it with new offerings, promotions or seasonal information to maintain visitor engagement.

Harnessing the Full Power of Google

Completing your Google Business Profile is a really important part of securing strong rankings, even when your customers may not be local. Google doesn’t introduce features and products without purpose; so optimising your Google Business profile is a no-brainer.

Bottom line, we have over a decade of evidence showing it can significantly enhance your search visibility.

Google Loves People Who Use Its Products

Over almost 15 years, the landscape of Google search results has gradually evolved, with ads, Google Business listings and feature snippets now dominating the top of search results. Meanwhile, the decreasing prominence of “organic” listings clearly shows Google’s intention to solidify its dominance in business search.

Ergo, embracing Google’s own products aligns with this trend and will position your business for success in an ever-evolving digital realm.

Embrace the Google mini-site Advantage

To sum things up, the Google Business Profile mini-site option offers a multitude of advantages for businesses seeking to bolster their online presence and no discernable negatives. From enhancing your backlink profile and SEO performance to displaying reviews and promoting special offers, embracing Google’s evolving landscape holds immense potential for every business.

Staying abreast of changes and investing time and resources into your mini-site can be a pivotal strategy for sustained growth and visibility.

What Businesses Ask Us About Their Google Business Mini-Site

1. What is my Google Business Profile?

A Google Business Profile is a free online listing that provides essential information about your business, such as your name, address, phone number, hours of operation, reviews, services and more. It helps you connect with potential customers and improve your online presence.

2. How do I create a Google Business Profile?

To create a Google Business Profile, you can visit the Google Business website and follow the prompts to provide your business information. You’ll need to verify your ownership and once verified, you can start managing your profile.

3. How does a Google Business Profile benefit my business?

Haven’t you read the last 1500 words?

A Google Business Profile enhances your online visibility, making it easier for potential customers to find and contact your business. It also allows you to showcase important details like reviews, photos, products or services, creating a comprehensive and informative online portfolio.

4. What is the Google Business Profile mini-site?

The Google Business Profile mini-site is a feature that allows you to create a simple website directly from your profile. It includes essential information and updates about your business, helping you engage with customers and improve your online ranking.

5. I don’t sell my products or services locally, why do I need a Google Business profile?

Even if your business doesn’t have a physical storefront or serve a local audience, having a Google Business Profile can still benefit you. It increases your online visibility and is a place to store (and display) your reviews, making it easier for interested users to find your website and learn about your business.

6. Can I manage my Google Business Profile from a smartphone?

Yes, Google offers a mobile app that allows you to manage your Business Profile on the fly. You can update information, respond to reviews and post updates directly from the app.

7. Are there any best practices for optimising my Google Business Profile?

Yes, optimising your Google Business Profile is essential for maximum impact. Some best practices include providing accurate and detailed information, uploading high-quality photos, responding to customer reviews and regularly posting updates to engage with your audience.

Next Steps:

To sum things up. Your Google Business Profile isn’t just a listing; it’s a dynamic platform that can significantly impact your online presence, engagement with customers and business success.

By harnessing its features, you unlock opportunities to elevate your backlink profile, enhance your SEO profile and present your brand in an engaging, informative manner. It’s another string to your bow and one that can translate into meaningful results for your business, amplifying your visibility and creating lasting connections with your target audience.

In an era where Google’s influence over business searches continues to expand, leveraging the potential of your Google Business Profile is a strategic move that aligns with the evolving trends of the digital landscape. The continued changes, updates and enhancements to the platform emphasise Google’s commitment to creating a robust ecosystem for businesses.

If all this makes sense, but you’re not sure how to proceed, or you’ve never considered a Google Business Profile, we’ll be happy to lend a helping hand. Our team is here to guide you through the intricacies, offer insights and provide a comprehensive Google Business Healthcheck for your business. This free evaluation will help you assess the effectiveness of your current profile, identify areas for improvement and chart a course toward greater online success.

Contact us today to schedule your free Google Business Health Check.

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