MotionWednesday, 24 June 2026

Ways and Means (Income tax (mileage amounts))

This Ways and Means motion authorises the government to change the approved mileage allowance relief (MAR) rates that employees and the self-employed can claim as tax-free expenses when using their own vehicles for work. The motion, brought by Chancellor Rachel Reeves, adjusts the permitted amounts per mile—typically set for cars, motorcycles, and bicycles—which directly affects how much workers can deduct from taxable income. The change is procedurally necessary under tax law to implement revised mileage rates, likely reflecting inflation or policy shifts in how the government supports home and remote working.

Millions of employees and self-employed people who use personal vehicles for work are affected. Higher mileage rates reduce their taxable income and leave more money in workers' pockets; lower rates have the opposite effect. For businesses, the rates influence whether they reimburse employees (and at what level) for mileage. Given inflation and rising fuel costs since the last adjustment, workers will scrutinise whether the new rates keep pace with actual motoring expenses or fall behind.

Interested MPs

Dame Harriett BaldwinConservative and Unionist Party

West Worcestershire

James MurrayLabour and Co-operative Party

Ealing North

Pat McFaddenLabour Party

Wolverhampton South East

Andrew WesternLabour Party

Stretford and Urmston

Andrew GriffithConservative and Unionist Party

Arundel and South Downs

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