After UNISON’s new General Secretary Andrea Egan met with Shadow Chancellor Rachel Reeves, UNISON successfully gained a commitment to finally review the 45 pence per mile mileage rate that had been static since 2011.
Following this review, which UNISON members were encouraged to take part in by the West Sussex branch, the Government did announce its decision to increase the tax free mileage rate to 55 pence, with immediate effect and with this decision backdated to April 2026.
This is great news, but what does it mean for you?
If you work for an employer paying more than 45 pence mileage, such as West Sussex County Council, you will no longer pay tax on the mileage you are paid when conducting business for your employer. This means you will no longer need a P11D. This brings some small but immediate relief.
However, most employers do not pay anywhere near the new tax-free rate of 55 pence to their employees. Therefore, UNISON West Sussex branch must lodge claims with every employer to ask them to increase their rate to at least the new 55 pence allowable under HMRC rules.
For our largest employer, West Sussex Count Council, we have already advised them that we intend to put in this formal, written claim for members and for backdating what we agree to April 2026. We are formalising this claim now.
It is complicated by the fact that WSCC is an NJC employer and mileage rates are derived from the NJC Green book. We are awaiting a steer from the national union in this regard.
Once submitted, we will roll this claim out to all our other employers.
Get in touch if you have any questions on this.