UK Autumn Budget 2026: mileage rate made permanent, mandatory benefits payrolling to phase in
Key points
- The 55p per mile rate for the first 10,000 business miles is made permanent from 6 April 2026
- The rate above that rises from 25p to 35p from 6 April 2027
- Mandatory payrolling of company cars, vans, fuel and medical benefits applies from 6 April 2027; other benefits from 6 April 2028
Law firm Lewis Silkin says the Autumn Budget delivered by John Healey on 28 October 2026 was quiet on employment tax. The 55p per mile approved rate for the first 10,000 business miles is made permanent from 6 April 2026. The rate above that rises from 25p to 35p from 6 April 2027. Mandatory payrolling of company cars, vans, fuel and medical benefits applies from 6 April 2027, and other benefits from 6 April 2028.
What employers should do
- Check payroll reporting arrangements for company cars, fuel and medical benefits ahead of 6 April 2027
Policy details
- Jurisdiction
- United Kingdom
- Status
- Proposed rule
- Effective date
- 2027-04-06
- Employers covered
- UK employers paying mileage allowances or providing benefits in kind
- Official source
- Official source pending
Original report: Lewis Silkin ↗Edited with AI assistance. Facts are based on official sources and original reports. For information only; not legal, immigration or insurance advice.