Recent Measures Impacting Individuals Who Travel for Work
In late May 2026, the UK government announced three reliefs designed to reduce out-of-pocket costs for self-employed individuals, remote workers, and others who frequently use a personal vehicle for business. (gov.uk)
Key Changes
- A 10p per mile increase in the tax-free mileage allowance rates (AMAP / MAR) for both employees and self-employed persons using their own vehicle for business—backdated to 6 April 2026. Saves ~£120 for someone driving 6,000 business miles. (gov.uk)
- Extension of the 5p per litre fuel duty cut for petrol and diesel for the rest of 2026, keeping pump prices lower. (gov.uk)
- The duty on red diesel will drop to 6.48p per litre from 15 June 2026 until 31 December 2026, for eligible users (agricultural, industrial). (gov.uk)
How This Affects Digital Nomads and Remote/Hybrid Workers
These changes are particularly relevant for those working remotely but still needing to travel (home to client, home to coworking space, etc.):
- Higher mileage allowance means less taxable income loss when using your car for business-related travel.
- Fuel duty freeze and red diesel cuts reduce costs for those who need fuel for work—e.g. mobile businesses, remote infrastructure maintenance.
- Savings may be particularly meaningful when combined: e.g. someone driving often may get relief both through higher mileage deduction and lower pump costs.
Actionable Advice for Remote/Hybrid Businesses
- Track your mileage meticulously, including date, purpose, miles, and whether your vehicle was used for work/home commuting.
- Claim the higher AMAP/MAR rate when filing expenses in Self Assessment or via payroll (if eligible).
- Reset accountant or financial software settings to use the correct mileage rates from April 2026 and ensure fuel expenses account for the red diesel rate where relevant.
- Check eligibility for red diesel rates: Many trades using heating or mobile plant may use red diesel—verify whether your use qualifies for the reduced rate until end-2026.
Example Scenario
Alex is a freelance photographer working across London and countryside. From 6 April 2026, Alex’s mileage rate for business travel rises, reducing taxable profit. When Alex fills up his private vehicle with fuel for work-related travel, the freeze in fuel duty helps reduce costs at the pump. If he sometimes uses red diesel for off-grid shoots or lighting setups, those periods of use will cost less too between mid-June and December 2026.
Category: Digital Nomad TaxHome: UK Author: NomadicTax Research Team ReadTime: 5-8 min Published: true