The new 55p mileage rate, explained for the Forces

HMRC's approved mileage rate has gone up for the first time in 15 years. If you drive to temporary places of duty, your 2026–27 refund could be bigger.

Last checked against HMRC and MOD guidance on 13 November 2026.

HMRC has raised its approved mileage rate for cars and vans from 45p to 55p a mile for the first 10,000 business miles in a tax year. It's the first increase in 15 years, and it's backdated to 6 April 2026.^[1]^[2]

If you drive your own car to a temporary place of duty, the higher rate means the tax relief you can claim for 2026–27 is bigger. Here's how it works for Service personnel.

What changed

HMRC approved mileage rates
Vehicle	2026–27	Before 6 April 2026
Car or van, first 10,000 business miles	55p	45p
Car or van, after 10,000 miles	25p	25p
Motorcycle	24p	24p
Bicycle	20p	20p

Only the first car and van rate changed. Everything else stays the same.^[3]

Why it matters for a military claim

The rate isn't paid to you directly. It sets the most your travel can be worth for tax purposes. If what you were paid for qualifying journeys is less than that, you can claim tax relief on the difference. HMRC calls this mileage allowance relief.^[3]

HMRC's method is:

Add up your business miles for the tax year.
Multiply them by the approved rate.
Take off any mileage allowance you were paid for those journeys.

What's left is the amount you can get tax relief on.^[3] Your refund is that amount multiplied by your rate of tax, so 20% for a basic rate taxpayer.^[2]

MOD travel allowances such as Home to Duty Travel (HDT) and Get You Home (Travel) are set separately, in JSP 752.^[4]^[5] So when HMRC's rate goes up, the gap between the two can get wider.

A worked example

These figures are made up to show the method. Your own will depend on your journeys and what MOD paid you, which you can check on your payslips.

6,000 qualifying miles in a year, with £1,500 of MOD travel allowance paid for them
	At 45p	At 55p
6,000 miles × HMRC rate	£2,700	£3,300
Less MOD allowance paid	−£1,500	−£1,500
Amount to claim relief on	£1,200	£1,800
Refund at 20% tax	£240	£360

In this example, the new rate adds £120 to the refund for the year. If you pay tax at 40%, the refund doubles.

Which journeys count

This is the part that decides whether you can claim at all. Tax relief is only available for travel to a temporary workplace. Travel between home and a permanent workplace is ordinary commuting, and you can't claim for it.^[6]^[3]

Under HMRC's rules, a workplace is temporary if you go there for a task of limited duration or a temporary purpose. It stops being temporary if you spend, or expect to spend, 40% or more of your working time there over a period that lasts, or is likely to last, more than 24 months.^[6]

For Service personnel, that often means:

Likely to qualify: courses, Phase 2 training, detachments and other duty away from your permanent unit that's expected to last under 24 months
Unlikely to qualify: your daily journey to your permanent duty station, even if MOD pays you HDT for it

If a posting that started as temporary is extended so it's expected to last over 24 months, it becomes permanent from the date the expectation changed.^[6] MOD describes HDT as a non-taxable contribution towards commuting costs.^[4]

Earlier years still use 45p. The new rate only applies from 6 April 2026. Claims for 2022–23 to 2025–26 are worked out at 45p. You can claim for the current tax year and the four before it.^[3] The 2022–23 year closes on 5 April 2027. See the deadline.

What you'll need

A record of each journey: the date, the reason, and the start and end postcodes. HMRC asks for this with mileage claims.^[7]
Your payslips, to show which travel allowances you were paid
Your P60 for each year. Here's how to get it from JPA.

Questions

Does the 55p rate apply to earlier tax years?

No. It applies from 6 April 2026. Claims for earlier years use 45p for the first 10,000 business miles.

Can I claim for driving to my permanent unit?

Usually not. Travel between home and a permanent workplace is ordinary commuting, which doesn't qualify for tax relief. Relief is for travel to temporary workplaces, such as courses or detachments expected to last under 24 months.

Is HDT taxed?

MOD describes Home to Duty Travel as a non-taxable contribution towards commuting costs. When you claim tax relief on qualifying journeys, any allowance you were paid for them is taken off first.

What if I drove more than 10,000 business miles?

The first 10,000 miles use 55p (45p before 6 April 2026). Every mile after that uses 25p.

Find out what you're owed

We'll work out your qualifying journeys, apply the right rate for each tax year and take off what MOD paid you.

Start your claim