HMRC Mileage Rate History: The 2011 Freeze and the 2026 Rise
For 15 years HMRC's Approved Mileage Allowance Payments rate did not move: 45p per mile for the first 10,000 miles from 6 April 2011 all the way to 5 April 2026. On 6 April 2026 it finally rose to 55p for the first 10,000 business miles - the first adjustment since 2011, and a change the RAC and AA had long campaigned for.
Pre-2011: the last review
The AMAP structure of 45p first 10,000 mi, 25p after was set in the 2011-12 tax year, replacing the older 40p / 25p structure that had been in place since 2002. The 2011 increase was a one-time bump explicitly tied to fuel-price increases through the late 2000s.
There was then no rate adjustment for 15 years, until the first-tier rate rose to 55p on 6 April 2026. The 2002 rate held for nine years; the 2011 rate held for fifteen.
Why the freeze mattered, and what the 2026 rise changed
Petrol price inflation alone eroded the real value of the 45p rate by roughly 10 to 15 percent over the freeze, depending on which year you index from. Insurance premiums for younger drivers and high-mileage drivers rose far more sharply.
Through the freeze, drivers covering significant business mileage were effectively subsidising vehicle costs the 45p rate no longer covered. The 6 April 2026 rise to 55p for the first 10,000 miles restores some of that lost value, though motoring groups argue it still trails real running costs.
FAQ
Has Parliament debated raising the AMAP rate?
Yes, repeatedly through the freeze. Written questions and early-day motions were tabled, and the Treasury's standing position was that AMAP is a simplification rather than a precise reimbursement of cost. That changed in 2026: HMRC raised the first-tier car and van rate from 45p to 55p with effect from 6 April 2026, the first increase since 2011.
Could the rate be cut?
Theoretically possible but politically very unlikely. A cut would generate strong opposition from motoring associations and millions of drivers. A freeze is the path of least political resistance, which is why it has continued.
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