In this week’s Enews, we look at the first increase in the approved mileage rates for 15 years and how crime against business is putting growth at risk. The Government has also announced a temporary reduction in VAT on certain supplies to help families.

• Approved Mileage Allowance Payments (AMAPs), Mileage Allowance Relief (MAR) and self-employed mileage
• Crime against business putting growth at risk
• Temporary reduced rate of VAT for children's meals, tickets and family attractions

The government has announced increases to AMAPs, MAR and self-employed mileage rates, which will be backdated to 6 April 2026. This is the first uprating of the mileage rates in 15 years. The new rates are:

• an increase from 45p to 55p per mile for the first 10,000 miles
• over that, the rate will remain at 25p per mile for mile 10,001 and over

All other mileage rates will remain the same.

Employers are able to increase the amount they reimburse their employees for business mileage, in line with the new rates. The change is retrospective to 6 April 2026.

If an employee is reimbursed less than the new AMAPs rate, they can claim tax relief for their job expenses. HMRC’s job expenses tax relief claim forms are currently being updated with the new mileage rates.

Employers who reimbursed their employees above the old rates, where tax and NIC was deducted, may need to re-run their payroll for April and May to account for the increase to AMAPs.

Self-employed customers will be able to use the new rates in their 2026/27 return.

In a statement, Dan Tomilinson, The Exchequer Secretary to the Treasury, said ‘This will represent the largest ever increase to these mileage rates, benefitting around 2 million employees and 1 million self-employed individuals, saving over £120 a year for a worker doing 6,000 business miles.’

Internet link: UK Parliament Website

Decisive action is needed to tackle the ‘hidden threat’ of crime against businesses damaging growth, according to the British Chambers of Commerce (BCC).

Theft, fraud, scams and cyber-attacks are increasingly affecting firms of all sizes and across all sectors, BCC research has found.

The business group’s research shows that 42% of UK businesses experienced some form of crime in the past year.

The data reveals larger firms are more vulnerable, increasing from 32% among micro-businesses to 58% among firms employing more than 250 people. The manufacturing sector is the hardest hit, with 50% of firms reporting business crime.

The BCC report concludes that business crime is a ‘structural constraint’ and ‘measurable brake’ on UK economic performance.

The BCC is calling for a National Business Crime Strategic Assessment to properly measure the economic harm caused by crime against businesses.

It is also asking for a single cyber-attack reporting system for firms and the creation of Regional Business Crime Hubs.

Ellis Shelton, Policy Manager at the BCC, said: ‘Crime against business is now a serious barrier to growth and investment across the UK.

‘Our research shows many firms are dealing with rising levels of theft, fraud and cyber-attacks. Bosses are being forced to divert crucial time and money to tackling this anchor on growth.

‘Crime is becoming more sophisticated and there needs to be a step change in the support businesses can count on.

‘Reducing crime against business isn’t just about protecting balance sheets. It’s about removing structural barriers to growth.’

Internet link: BCC Website

The government is helping families this summer with the cost-of-living crisis by cutting VAT on attractions and meals out. The temporary reduced rate of VAT will cover children's meals, tickets and family attractions.

HMRC guidance explains that a temporary reduced rate of VAT of 5% will apply to:

• certain supplies of children’s meals
• children’s admission to theatres, cinemas, concerts, exhibitions and shows
• all admission tickets to attractions suitable for families with children, such as soft play and theme parks.

The reduced rate will apply from 25 June 2026 to 1 September 2026 (inclusive).

In addition, children aged 5 to 15 years will be able to travel for free on local bus services in England throughout August. This will make it easier and more affordable for families to get out and about.

Speaking about the announcement, the Prime Minister Keir Starmer said:

‘I know how precious that time is, yet too many parents feel they have to hold back because the cost of living is still squeezing budgets.

‘This summer we’re cutting the cost of a day out together - free bus travel for children aged five to 15 in England, and VAT slashed on a wide range of kid’s attractions - so families can afford more time together.’

Internet link: Press release