Rachel Reeves has confirmed the HMRC mileage rates for motorbikes and bicycles after announcing a 10p per mile hike for drivers in cars and vans. The Labour Party Chancellor boosted HMRC mileage rates to 55p for those doing under 10,000 miles.
But for motorbikes it is a flat rate of 24p respectively, no matter the mileage. And this will not change, Ms Reeves has confirmed.
BBC and ITV star Martin Lewis said: "If you use your own vehicle/s for work, you may be able to claim tax relief on the approved mileage rate. This covers the cost of owning and running your vehicle. You cannot claim separately for things like fuel, electricity, vehicle tax, MOTs or repairs.
"The rules are different for company cars. The 45p, now 55p, mileage rate applies to cars and vans and drops to 25p per mile after 10,000 miles per tax year."
The rate uplift applies to employees and to self-employed workers and will apply, backdated, from 6 April 2026.
There is also a 5p per passenger per business mile for carrying fellow employees in a car or van on journeys which are also work journeys for them. Only payments specifically for carrying passengers count and there is no relief if you receive less than 5p or nothing at all, though.
Under HMRC rules, the charge is based on the price of the car for tax purposes (normally the list price) and accessories multiplied by an appropriate percentage based on the level of CO2 emissions and the fuel the car uses.
There is a ready-reckoner of appropriate percentages for petrol-powered cars, the HMRC mileage page stipulates.
Mr Lewis reacted to the announcement on BBC Radio 5 Live with Adrian Chiles, saying: "It is good to see them finally doing a retail offering. This is the type of thing I have been telling them for the last couple of years that they need to be doing, actually things that people can see a manifest benefit from.
"Some of them, like the 'British Summer Saving Schemes', for consumers at least, are a bit gimmicky. This is a temporary cut in VAT on summer attractions for adults and children – fairs, theme parks, zoos, museums – and some just for kids – cinemas, soft play and restaurants – from 25 June until 1 September.
"I mean, look, that will be nice for people. It is a reduction in VAT from 20% to 5%. It will be good for those hospitality industries that are involved in it. And hopefully they will pass all [of that VAT saving] onto consumers. Then it is win-win."
