Carrington Accountancy - City of London Accountants

Mileage Rate Changes Are Here — Here’s What You Need to Know

On 21st May 2026, the government announced an increase to the Mileage Allowance Payment (MAP) — a welcome change for anyone who regularly claims mileage for business travel.

What’s Changing?
From April 2026, the following new rates will apply:
You can claim 55p per mile for the first 10,000 business miles in the tax year
25p per mile for any miles over 10,000
Company owned fully electric vehicles – HMRC allow a claim of £0.07 per business mile where the vehicle is charged from home.
These increases are backdated to April 2026
The new rate applies to cars and vans only — motorbike rates remain unchanged.

This update means many business owners, employees and sole traders will see higher allowable claims, helping offset rising travel costs.

Keeping Accurate Mileage Records
To make a mileage claim you must have a mileage log. It’s essential to keep a clear and complete mileage log.

HMRC can request evidence at any time, so make sure your records include:
Date of the journey
Purpose of the trip
Start location
End location
Exact miles driven (no rounding up)

A few best‑practice tips:
Log your mileage promptly and in chronological order
Use exact figures — avoid estimating or rounding
If you use a spreadsheet, keep a backup copy to avoid losing data
If your log is lost or incomplete, contact HMRC for guidance on what to do next. It is also good practice to keep your fuel receipts in the event of any challenge.

Mileage claims do not cover:
Road, bridge, tunnel tolls
Parking fees
Congestion charges
Speeding or parking fines, other road offences

If you would like any advice with claiming expenses as a sole trader or business, we are happy to help.

Your Accountant… and Your Part‑Time CFO

Most businesses don’t need a full‑time CFO — but they do need strategic financial guidance. That’s where our partial CFO service comes in.

Alongside our core accountancy support, we provide the high‑level financial insight that helps you make smarter decisions, plan for growth, and stay ahead of challenges. Think of it as having a senior finance partner in your corner, without the full‑time cost.

And because every business is different, we tailor each package to your needs — whether you want monthly strategic reviews, cashflow support, forecasting, or a deeper dive into profitability and performance.

With our partial CFO service, you can get:

✅Clear financial strategy and forecasting
✅Cashflow planning and performance insights
✅Budgeting support and scenario modelling
✅Guidance on pricing, margins, and profitability
✅Regular financial reviews to keep you on track
✅A proactive partner who understands your business

We combine the accuracy of an accountancy firm with the strategic thinking of a CFO — giving you the confidence to grow with clarity and control.

If you’re ready to take your finances beyond compliance and into strategy, we’re here to support you.

Drop Nicky a message – [email protected]

What Is MTD ITSA? Here’s What You Need to Know!

From 6th April 2026, Making Tax Digital for Income Tax Self Assessment (MTD ITSA) became mandatory for sole traders and landlords earning over £50,000 per year.

This is a major shift in how you manage and report your income — and it’s important to understand what’s changing.

So, what does this mean for you?
Digital record keeping is now compulsory
You must keep all reports, receipts, invoices, and financial records in a digital format. No more paper based systems.

You must use HMRC approved digital software. Your accounting software needs to be compatible with MTD so it can link directly to HMRC.

Quarterly digital submissions are required
Instead of one annual tax return, you’ll now need to send HMRC updates every quarter, plus a final end of year submission.

This new system is designed to improve accuracy, reduce errors, and give you a clearer picture of your tax position throughout the year — but we know it can feel like a big change.

We’re here to make it simple!

At Carrington, we help you transition smoothly into MTD ITSA by:

Setting you up with the right digital software.

Showing you exactly how to use it.

Keeping you compliant with quarterly submissions.

Supporting you every step of the way
If you’re unsure what to do next, we’re here to guide you.

Feel free to contact us if you have any questions: [email protected]

https://www.gov.uk/government/news/hmrc-introducesgovukonelogin-for-new-customers

HMRC introduces GOV.UK One Login for new customers HMRC introduces GOV.UK One Login.

https://news.sky.com/story/hmrc-to-roll-out-penalty-points-system-13499601

HMRC to roll out penalty points system Under the plan, those who miss self-assessment deadlines will get penalty points instead of an automatic £100 fine.

We have a new Ask the Accountant Q&A

https://www.carringtonaccountancy.com/how-should-i-allocate-expenses-when-combining-a-personal-holiday-with-a-follow-up-business-trip/

https://www.gov.uk/government/news/65-rise-in-self-assessment-payments-via-the-hmrc-app

65% rise in Self Assessment payments via the HMRC app Self Assessment customers reminded of payment options as deadline approaches.

https://www.gov.uk/government/news/festive-filers-sleigh-their-self-assessment-returns

Festive filers sleigh their Self Assessment returns Thousands of Self Assessment customers file over festive period.

Please be advised of our festive opening times