Business Mileage Allowance

fsaimatt

I was speaking to a client recently who claims Universal Credit, and is a courier. UC are still using the 45p per mile for business mileage from 6 April 2026. Has this been agreed by HMRC to use the old rate, which seems unfair on those claiming business mileage just because they're on UC.

Grumpy_chap

I was speaking to a client recently who claims Universal Credit, and is a courier. UC are still using the 45p per mile for business mileage from 6 April 2026. Has this been agreed by HMRC to use the old rate, which seems unfair on those claiming business mileage just because they're on UC.

It really might be better if the Client joins the forum themselves and provides full details of their query and circumstances. With the details provided there are several gaps in information and you will either be surmising or reverting to the Client to clarify.

In what capacity is this individual your Client?

Has the individual requested your comment on their UC claim?

fsaimatt

My query is about the business mileage rate not changing for UC claimants and not specific to them personally. They asked me if there is any reason why they don't use the new rate of 55p.

MattMattMattUK

https://forums.moneysavingexpert.com/discussion/comment/82162551#Comment_82162551

But what do you mean by "the business mileage rate not changing for UC claimants", in what capacity are they claiming, in what capacity are they employed, the specifics of the vehicle (own, employer supplied, pay own fuel, fuel paid but pay for personal mileage etc.) there is no one answer, context matters.

fsaimatt

Context doesn't matter, as the question relates to what it states in the Gov.UK website. It states that UC claimants can claim 45p a mile up to 883 miles a month, using simplified expenses for business travel. This is for employed or self-employed using the flat rate mileage rate instead of actuals. This is just for business mileage, not personal mileage as long as you keep a record of the business mileage. No context is going to change the specifics of what rate is claimed. But shouldn't it be 55p instead of 45p and they maybe, just maybe not updated their rules.

sgthammer

There are many discrepancies between HMRC and UC rules, and no legal requirement for them to match up. It is what it is.

Your client can use the new 55p/mile rate for tax purposes while only being allowed 45p/mile for income reporting to UC. It just means extra admin.

MattMattMattUK

Maybe they have not updated the web page, maybe that is irrelevant, if you know best then go for it.