Martin Lewis Calls Mileage Allowance Hike a Game Changer for Drivers

Carmen López · 2026-05-21

Martin Lewis, the money-saving expert millions of us trust, has just flagged a major update for anyone who drives for work. The mileage allowance is going up, and he's calling it a "really important change." If you use your own car for business trips, this one's for you. Let's break down what this means, how much more cash you could claim, and why you shouldn't ignore it. We'll keep it simple and practical, just like a chat over coffee. ### What Is the Mileage Allowance and Why Does It Matter? The mileage allowance is the amount your employer can pay you tax-free for using your personal vehicle for work. Think of it as reimbursement for fuel, wear and tear, and depreciation. The standard rate has been stuck at 45 cents per mile for years, but that's about to change. Lewis says the increase is overdue. With gas prices and maintenance costs climbing, drivers have been losing out. The new rate will help bridge that gap and put more money back in your pocket.  ### How Much More Will You Get? The exact numbers depend on the final government decision, but early reports suggest a bump of several cents per mile. For someone driving 10,000 business miles a year, that could mean an extra $200 to $500 annually. That's not pocket change. - If you drive 5,000 miles per year, expect around $100 to $250 more. - For 15,000 miles, you could see $300 to $750 extra. - Heavy drivers covering 20,000 miles might gain $400 to $1,000. These are rough estimates, but they show the potential. The key is knowing your mileage and claiming correctly. ### Who Benefits Most From This Change? This isn't just for sales reps or delivery drivers. Anyone who uses their car for work-related travel qualifies. That includes: - Employees visiting clients or job sites. - Freelancers and contractors driving to meet customers. - Teachers traveling between schools. - Healthcare workers making home visits. If you've been skipping mileage claims because the rate seemed too low, now's the time to start tracking. Every mile counts. ### How to Claim Your Mileage Allowance Claiming is straightforward, but you need records. Here's a simple process: 1. **Log every business trip.** Note the date, start and end locations, miles driven, and purpose. 2. **Use a mileage tracking app or a simple notebook.** Accuracy matters. 3. **Submit a claim to your employer.** Most companies have a form or expense system. 4. **Keep receipts for tolls and parking.** Those can be added too. If your employer doesn't reimburse at the new rate, you can claim the difference on your tax return. That's where Lewis's advice really shines. ### Why This Change Is a Big Deal Lewis emphasized that this adjustment reflects real-world costs. Fuel prices in the U.S. have jumped, and car maintenance isn't cheap. The old rate didn't cover the true expense of driving, so many drivers were effectively subsidizing their employers. > "This is a really important change for drivers," Lewis said. "It's about fairness and making sure you're not out of pocket." That quote sums it up. The allowance isn't a bonus; it's compensation for actual costs. Getting it right protects your income. ### What Should You Do Now? Don't wait. Start tracking your business miles today. Even if the new rate isn't official yet, you'll be ready to claim retroactively if needed. - Check with your HR department about the updated policy. - Review your last few months of driving and estimate what you missed. - Consider switching to a mileage tracking app to simplify things. Every dollar counts, especially with inflation squeezing budgets. This change could put hundreds back in your wallet without any extra effort beyond logging your trips. ### Final Thoughts Martin Lewis has a knack for spotting changes that actually impact our daily lives. The mileage allowance rise is one of those quiet updates that can make a real difference. Whether you drive 100 miles a year or 20,000, it's worth paying attention. So grab a notebook, open an app, and start tracking. Your future self will thank you when that extra cash rolls in. And remember, this is your money; don't leave it on the table.