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Tax-free mileage rate increased to 55p per mile — what employers need to know

Tax-free mileage rate increased to 55p per mile — what employers need to know

by Kevin | May 21, 2026 | Blog post, News, Payroll Updates

The Chancellor has announced a welcome increase to the tax-free mileage rate for employees who use their own car or van for business journeys. From April 2026, the approved mileage rate for cars and vans will increase from 45p per mile to 55p per mile for the first...

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