• The increase to 55p per mile marks the first uplift in HMRC mileage rates in over 15 years.
• With the change backdated to April 2026, businesses may already be carrying risk through outdated systems.
• As mileage claims become more valuable, inaccuracies between rates are creating greater financial and compliance risks.

Following the recent increase to HMRC’s mileage rate, some businesses’ expense policies will need to be left in the rear view. From 6th April 2026, the Approved Mileage Allowance Payment (AMAP) for cars and vans has risen from 45p to 55p per mile for the first 10,000 business miles, a 22% increase and the first uplift since 2011.

While the change is undoubtably positive for employees who rely on their own vehicles for work, it also introduces a range of practical and operational considerations for employers. This is even more of a challenge for sectors like construction, where mileage claims are frequent, high-volume and often critical to day-to-day site activity.

According to James Rowell, Founder and Managing Director of Capture Expense, the change is already making businesses reevaluate how they think about mileage and expenses.

“This isn’t necessarily about businesses getting mileage wrong, the important thing now is about updating processes that were left unchanged for years. Manual tracking, outdated policies, and systems that haven’t evolved with the way people actually work. Those are the things now creating risk, and what’s catching organisations out isn’t necessarily the mileage itself, rather, it’s how it’s being recorded, approved, and managed.”

Here are four key areas that businesses should be reviewing now.

1. Expense policies need immediate updating

For organisations that reference HMRC rates within their expense policies, this is not a passive change. The increase to 55p means that any outdated documentation, systems or guidance could quickly fall out of compliance, potentially leading to financial penalties, incorrect reimbursements and reputational risk.

Although employers are not legally required to match the new rate, continuing to reimburse at 45p risks creating potential friction with employees who are now aware of the updated allowance, and may be entitled to claim tax relief on the difference.

It couldn’t be simpler, if your policy hasn’t been reviewed since April, it’s already behind.

2. Payroll and expense systems must reflect the change

For many finance teams, mileage rates are embedded into systems that have run unchanged for years. The shift to 55p requires those systems, whether that be expense platforms or payroll processes, to be updated accurately and consistently.

This is particularly important given that the change has been backdated to 6th April 2026, meaning businesses may also need to account for historic claims submitted earlier in the tax year.

Failure to align systems properly can result in incorrect reimbursements, additional admin, and potential compliance issues further down the line.

3. Understand what the new rate actually covers

One of the most common misconceptions around mileage rates is what they are designed to include. HMRC’s AMAP rate is not focused just on fuel, it’s intended to cover the full cost of running a vehicle, including servicing, insurance, wear and tear and depreciation.

This is particularly relevant for industries where vehicles are often used intensively, and conditions can accelerate wear and tear such as field service or logistics. The increase to 55p reflects rising real-world costs, from fuel to maintenance, which have significantly outpaced the previous 45p rate over the last 15 years.

Understanding this helps businesses ensure that their reimbursement strategies are both fair and aligned with HMRC expectations.

4. This is an opportunity to modernise mileage tracking

Looking beyond compliance, the rate increase presents a bigger opportunity. Mileage is the most commonly submitted expense categories for all businesses, according to data from Capture Expense.

With higher reimbursement values now in play, inaccuracies, missing journeys, or manual errors can quickly become more costly. At the same time, confusion between different rates, such as AMAP for personal vehicles versus Advisory Fuel Rates for company cars, remains a frequent issue flagged in compliance checks.

Digital, real-time tracking and automated mileage capture can help businesses reduce this risk and ensure every claim is both compliant and correctly valued.

James Rowell, Founder and Managing Director of Capture Expense, said:

“This increase has been a long time coming, and it’s an important step toward reflecting the real cost of using a personal vehicle for work.

The organisations that benefit most will be those that use this moment to modernise their processes, ensuring claims are accurate, policies are up to date, and finance teams have full visibility over what’s being spent and why.”

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Transport & Logistics Magazine – Driving The Industry Forward