Update to Mileage Allowance Payments (MAPs) for Employee-Owned Vehicles

Mileage Allowance Payments (MAPs) represent the tax-free reimbursements an employing body can provide to staff who use their own personal vehicles for business travel. Under HMRC guidelines, these payments remain exempt from reporting up to a designated "approved amount" each tax year.

Following the Chancellors economic address to the Commons on 21 May 2026, the government introduced measures to assist families and businesses with rising living costs. This includes a 10p-per-mile increase to the tax-free mileage allowance, retroactively applied from April 2026.

Approved Tax-Free Rates Per Business Mile:

• Initial 10,000 miles: 55p per mile (effective April 2026)

• Subsequent miles: 25p per mile (unchanged)

Note: Travel completed prior to April 2026 remains capped at the previous rate of 45p per mile.