Armed Forces: Mileage Allowances
The question
To ask the Secretary of State for Defence, for what reason the Motor Mileage Allowance that can be claimed by members of the Armed Forces for travel in a personal car does not include the higher rate of £0.55 per mile for the first 10,000 miles travelled in a business year, in line with the HMRC mileage rate.
Answered by Ministry of Defence
The Approved Mileage Allowance Payment rate is the amount that an employer can reimburse tax-free when an employee uses a private vehicle for business mileage. From 6 April 2026, the rate for cars and vans increased to 55 pence per mile for the first 10,000 business miles. However, this is an advisory rate, and employers may reimburse more or less.
The Ministry of Defence sets its Motor Mileage Allowance rates separately, taking account of the costs associated with authorised duty travel and the need to secure value for money for the taxpayer. Publicly funded transport, including green or white fleet vehicles, is provided where appropriate for authorised duty journeys away from a Service person’s permanent duty station, and Service personnel are not compelled to use their private vehicle for such journeys.
Where an individual receives less than the approved HMRC rate for qualifying business mileage, they may claim Mileage Allowance Relief from HMRC on the difference, subject to HMRC rules. Motor Mileage Allowance rates are kept under constant review.
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