What are the NHS mileage rates for 2026?

From 1 July 2026, NHS staff on Agenda for Change terms in England are reimbursed 59p per mile for the first 4,500 miles a year and 36p per mile after that, for a car of any fuel type. Motorcycles are 30p, pedal cycles 20p, and the passenger allowance is 5p per mile.

Is NHS mileage taxable?

HMRC compares your total mileage payments for the tax year with its approved amount (55p a mile for the first 10,000 business miles, 25p after). Anything paid above the approved amount is taxable. At the NHS rates that tends to happen on lower annual mileage.

Can NHS staff claim mileage allowance relief?

Yes, if your NHS mileage payments for the year come to less than HMRC's approved amount. At the current rates that starts at around 5,448 business miles a year, because the NHS rate drops to 36p after 4,500 miles while HMRC's stays at 55p until 10,000.

When do NHS mileage rates change?

The NHS Staff Council reviews the car rate twice a year, in April and October, using ONS motoring-cost inflation. Any change applies from the following July or January, so the next possible change is January 2027.

Rates from 1 July 2026 · updated October 2026

NHS mileage rates: 59p per mile

Under Section 17 of the NHS Terms and Conditions (Agenda for Change) in England, staff who use their own car for work are reimbursed 59p a mile for the first 4,500 miles in the year and 36p after that.

NHS mileage allowance rates from 1 July 2026

Vehicle or allowance	Up to 4,500 miles a year	Over 4,500 miles
Car (all fuel types)	59p	36p
Motorcycle	30p on all eligible miles
Pedal cycle	20p on all eligible miles
Passenger allowance	5p per mile
Reserve rate	30p per mile
Carrying heavy or bulky equipment	3p per mile

Source: NHS Terms and Conditions of Service Handbook, Section 17 (England), Table 7. The reserve rate applies in specific cases, such as when an employee unreasonably turns down the offer of a lease car. Local agreements can differ, and Wales has its own Section 17 — Scotland and Northern Ireland publish their own arrangements — so check your employer's travel policy too.

Which miles the NHS pays for

You are reimbursed for miles beyond your normal home-to-base round trip. Journeys from your agreed work base and back count in full. If you set off from home instead, the handbook deducts your usual home-to-base distance: with a 15-mile commute, a first visit 20 miles from home earns 5 eligible miles, and a first visit 10 miles from home earns none until you have driven past the 15.

That deduction is why an NHS claim needs a proper trip-by-trip record rather than a weekly total — each day's first and last legs are treated differently from everything in between.

NHS rates vs HMRC's 55p: tax on the difference

HMRC does not look at the pence per mile. It adds up everything your employer paid you for business miles in the tax year and compares it with its approved amount — 55p a mile for the first 10,000 miles, 25p after. Anything paid above that is added to your pay and taxed. If you were paid less, you can claim mileage allowance relief on the shortfall.

Business miles in the year (car)	NHS pays	HMRC approved amount	Difference
2,000	£1,180.00	£1,100.00	£80.00 over — taxable
4,500	£2,655.00	£2,475.00	£180.00 over — taxable
8,000	£3,915.00	£4,400.00	£485.00 under — claim relief
10,000	£4,635.00	£5,500.00	£865.00 under — claim relief
12,000	£5,355.00	£6,000.00	£645.00 under — claim relief

The NHS rate beats 55p on the first 4,500 miles, but HMRC's rate stays at 55p much longer. From roughly 5,448 business miles a year the NHS total falls below the approved amount, and community nurses, midwives and therapists who drive that much can usually claim relief on the gap. Relief reduces taxable income, so a £500 shortfall is worth £100 to a basic-rate taxpayer. The figures assume the tax-year and NHS mileage years line up; your payslips are the real test.

Claiming is the same as for any employee: Self Assessment if you file a return, otherwise HMRC's online form or the P87 — with a mileage log showing each journey's reason and start and end postcodes.

Work out your mileage claim

Business miles this tax year Vehicle Passengers carried (optional)

£1,100.00you can claim for 2026/27

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Uses the HMRC approved mileage allowance payment (AMAP) rates for 2026/27: 55p per mile for the first 10,000 business miles, then 25p.

When the NHS rates change

The NHS Staff Council reviews the car rate in April and October, applying ONS inflation for the cost of running a vehicle to HMRC's approved rate. A change takes effect from the following July or January and only happens if the result moves by a whole penny. The rates above were set from 1 July 2026; the next point at which they could change is January 2027. If you are claiming for trips before 1 July 2026, the rates in force at that time apply.

Stop reconstructing your mileage from memory

Odo logs your drives automatically in the background, you swipe each one business or personal, and it totals your claim at the 2026/27 rates — with a CSV export of every trip, dated, with its reason and distance.

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