Two recent announcements from the Chancellor may affect you — here’s what you need to know.
🚗 Mileage rates increase (from April 2026)
Mileage rates have increased for the first time in 15 years:
- 55p per mile (first 10,000 miles) (previously 45p)
- 25p per mile thereafter (unchanged)
Applies to:
- Employees and company directors
- Self-employed using simplified expenses
👉 What this means:
- Higher mileage = more tax relief
- You may be able to top up claims already made this tax year
⚠️ Key points to watch
- The 55p rate applies to all cars and vans (petrol, diesel and electric)
- Motorcycle and bicycle rates are unchanged
- If you have a company car (including an EV):
- You cannot also claim 55p per mile for general running costs
- It’s either mileage OR actual vehicle costs via the company, not both
🍽️ Temporary VAT reduction (summer 2026)
From 25 June to 1 September 2026, VAT will drop from 20% to 5% on:
- Children’s meals
- Cinema, theatre and similar tickets
- Family attractions (e.g. soft play, theme parks)
👉 For most of our dental clients:
There maybe a modest saving on keeping your children entertained this summer but this depends on the venue reducing there prices, which they don’t have to!
✅ Key takeaway
- Mileage increase → small but useful tax saving
- VAT change → unlikely to impact most dentists
If you’d like us to check your mileage claims or confirm you’re claiming correctly, just get in touch 👍
❓ FAQs (Helpful for clients)
Can I claim 55p per mile for an electric car?
Yes — the same rate applies to petrol, diesel and electric vehicles.
Do motorcycle and bicycle rates change?
No — these rates remain unchanged.
Can I claim 55p if I have a company car?
No — if the company provides the vehicle, you can’t also claim mileage for running costs. It’s one method or the other.
Do I need to update previous mileage claims?
Possibly — if you’ve already claimed at 45p in 2026/27, you may be able to claim the difference.
Does the VAT reduction affect dentists?
For most dental clients, no — it mainly applies to hospitality and family entertainment businesses.
