NALC publishes new advice on travel mileage, fuel rates and allowances

We have published a new resource on travel mileage and fuel rates and allowances following changes announced by HM Revenue & Customs (HMRC) for the 2026/27 tax year.

The advice note explains the new approved mileage rates, which have changed for the first time since 2011. From the 2026/27 tax year, the approved rate for cars and vans has increased to 55p per mile for the first 10,000 business miles, before reducing to 25p per mile thereafter. Rates for motorcycles and bicycles have also been updated.

The resource outlines what these changes mean for parish and town councils, including how they may affect employee contracts, council policies and mileage reimbursement arrangements. It also clarifies the position for councils using contracts that refer to National Joint Council (NJC) mileage rates.